The forecast milk price increase is no doubt the morale boost farmers needed.
Fonterra's announcement on Thursday of a 50 cent increase to $4.75 a kilogram of milk solids has been well received by most.
Somewhat unusual timing to say the least, but is this move politically rather than economically motivated?
The Board is currently under a general governance review and at risk of upheaval.
So is this increase just to keep farmers onside?
And given it's just a forecast, will the increase actually come off?
Waikato University Professor of Agri-business Jacqueline Rowarth spoke to Paul Henry.
