Fonterra has announced a second step-up of $0.20kgMS taking the current season weighted average farmgate milk price to $8.35kgMS. The 20c hike consists of 17c per kgMS butterfat and 24c per kgMS of protein.

The step-up is a result of continued improving global market conditions, according to Fonterra Oceania farm source and sustainability director Matt Watt. Fonterra said a softer Australian dollar led to improved returns on exports, supporting the step-up amidst global market uncertainty.