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Milking time - Source: ONE News -
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Farming communities around the country are celebrating Fonterra's revised projected milk payout for the current season.
The dairy co-operative says it will lift the payout from $5.10 per kilo of milk solids to $6.05.
The increase amounts to around $1 billion in extra revenue for New Zealand's 11,100 Fonterra farmers.
The news is going down well in dairy towns like Morrinsville where farmers like Maurice Koch will each be, on average, $100,000 better off.
"Farmers in hard times tighten their belts and we manage to get through. And when there's a little bit more money about, we pay back some of the debt that we've got into," he says.
But there are benefits for more than just the farmers, with many businesses in town expecting to see some flow on effects.
"With the future looking quite bright, I think farmers will start to spend on capital items again. And I think the flow-on effect for the country's going to be pretty good," says Brett Maber of Maber Motors.
"And as soon as they realise they've got extra money.. they probably will come out to lunch more," says local cafe owner Lesley Munro.
And even travel agents like the Morrinsville House of Travel are hoping farmers with a little more cash in their pockets will now look at taking some time off and heading away for a well earned break.
