New Zealand dairy farmers are celebrating,  with news Fonterra has added another 40 cents to its milk payout forecast.

That brings it up to a season high $6.10 per kg of milk solids.

The total is the second highest in the co-op’s history, thanks to higher global dairy prices and lower production overseas.

And it means an extra $512 million dollar boost for  its 10,500 farmers.

The big question now is how will the windfall be spent?