Fonterra seen raising price it pays to milk suppliers

Wellington

NEW Zealand dairy co-operative Fonterra is expected to raise the price that it pays its milk suppliers as lower production due to drought has stemmed supply and lifted global dairy prices from multi-year lows.

When the world's largest dairy exporter updates its farmgate price on Thursday, analysts expect it to raise its payout to as much as NZ$5 (S$5.10) per kg milk…