Aussie dairy firms up farmers' returns on rising rebound hopes

Wellington

TWO of Australia's biggest dairy producers will raise returns to farmers, a sign that a nascent recovery in dairy prices is beginning to filter through to the struggling industry.

Fonterra Australia lifted its farmgate payout by A$0.35 while Murray Goulburn set aside a one-off sum of more than A$80 million (S$84.8 million) to pay more for milk supply and fund loans for struggling farmers.