Fonterra has lifted its payout forecast by 20 cents.

The co—op announced yesterday that it was lifting its 2012 forecast to between $6.90 and $7 per kilo of milk solids.

This comprises a Fonterra farmgate milk price of $6.50 per kilo of milksolids and a distributable profit forecast of 40 to 50 cents per share.

Fonterra says the new forecast is a result of a modest recovery in global dairy commodity prices – driven by strong demand for combined whole milk and skim milk powders out of ASEAN economies and Brazil, Mexico and China.

The increase comes after Fonterra dropped its forecast by 45c in October and rural economists say the yo-yo forecasts reflect the current volatility in world dairy prices.   

Meanwhile, Fonterra has also said the estimated fair value share price for 2012/13 will remain at $4.52 per share – the same as this season.       

Independent valuer, Grant Samuels, has estimated a restricted market value range for Fonterra shares with a mid-point of $4.26 per share as at 1 June 2012.

That estimate is 2 per cent of 8 cents per share higher than the valuation for the current 2012 season.