⁍ Fonterra Co-operative Group Ltd on Thursday raised the price range it pays farmers for milk.

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⁍ The world’s biggest dairy exporter lifted its farmgate milk price range to between NZ$6.3 and NZ$7.3 per kilogram of milk solids (kgMS), from NZ$5.9-NZ$6.9 per kgMS.

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– The price New Zealand farmers will be paid for their milk has been raised for the first time in four years, Reuters reports. The country’s biggest dairy exporter, Fonterra, said it would pay farmers between $6.3 and $7 per kilogram of milk solids, up from between $6.2 and $6.3 before. The price increase is due to increased demand from China, Fonterra’s biggest market. “Despite the initial impact of COVID-19, we have seen demand for dairy in China recover quickly,” the company’s CEO said in a statement. “In particular, demand for Whole Milk Powder, which is a big driver of milk price, has been stronger than expected.” The company said it was “keeping a close eye” on how the global economic recovery could be affected by new waves of infections and restrictions across Europe. “With increasing demand and supply, we see the dairy outlook as more balanced, but given there are still a number of risks, we are still recommending our farmers be cautious with their decision making,” the CEO added.