Fonterra has eased fear of lower returns next season, holding it forecast payout range between $6.90 and $7.10.

Many pundits saw the dairy giant’s forecast review earlier this month as an underhand announcement it was lowering the payout.

Chairman Sir Henry van der Heyden says if current conditions held, the payout would be marginally lower, but the co-op sees signs it may strengthen later in the season.

Fonterra’s annual results and final payout for the 2009/10 season will be released on September 23.

Fonterra’s consolidation has been welcomed by new Shareholders’ Council Chair Simon Couper.

The Northland dairy farmer says the unchanged payout range will be well received by farmers still feeling the impact of the recession.

“Look, it’s great news, because a lot of farmers have had to put out a lot of money just to maintain their farming system heading into the new season" he said.

"The danger of assuming you’re gonna get great payouts for the foreseeable future is you can put yourself into financial positions where you can’t always deliver.”

And Federated Farmers was pleased, if a little underwhelmed, by the news.

Dairy Chairman Lachlan McKenzie says commentators shouldn’t be so quick to read the worst into a payout review.

“It’s getting right into the middle of the busy season, so farmers are very much concentrating on their key businesses – calving, getting cows ready for milking, and feeding out" he said.

"It’s good that they don’t have to worry about milk prices – if they’re gonna crash or not.”

The payout is made up of an estimated $6.60 per kilo of milk solids and a Distributable Profit of 30-50 cents per share.