The announcement that Fonterra has lifted its forecast payout by an incredible 60 cents was put starkly into perspective by events in Christchurch.

The Co-operative’s announcement came on Tuesday after record milk powder price rises over the last three months.

Fonterra Chairman Sir Henry van der Heyden says the announcement was meant to lift farmers’ spirits, but has now dropped down the co-op’s priority list.

Mr van der Heyden says Fonterra is assisting in the recovery effort by tanking water into the area, as most of the city’s pipes are still unusable.

Federated Farmers Dairy spokesperson Lachlan MacKenzie says yesterday was a bittersweet experience.

“For Dairy Farmers and for New Zealand, it is a huge boost for the country.

“Our income levels need to continue to increase to allow us to pay for extra costs, like we have seen in Christchurch.

“It’s just horrible.”

Mr MacKenzie says Farmers from around the region are asking how they can help, as they look to follow Fonterra’s lead.

The full announcement can be found here.