Dairy giant Fonterra has raised its forecast milk price payout to a midpoint of $10 - the second rise in less than a month.

The company says this new forecast reflects strong international demand, particularly from China and Southeast Asia.

Fonterra's CFO Andrew Murray says this news has been received positively by farmers.

"US production is very flat and European production is down - so the demand from imports is pretty good from our perspective and we've had a strong start to the season as well."

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