Stuart Davison: Dairy Insights Consultant on Fonterra raising their farmgate milk price forecast this season - Heather du Plessis-Allan Drive

Fonterra's luck seems to have turned around, as they announced a positive revised forecast.

The dairy co-op has lifts its farmgate milk price- with the midpoint up 50 cents, to $7.25 per kilogram of milk solids.

Dairy Insights Consultant Stuart Davison says stronger demand from China is the driving force behind this outlook- but it's unclear how sustainable this demand is.

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