A bumper run for farmers, but at a big cost to Fonterra.
The dairy giant has reported a nine percent dip in profits for the nine months to the end of April, compared to same time last year.
Dairy industry analyst and economist Peter Fraser told Mike Hosking Fonterra is paying its farmers too much for milk, and not enough to investors.
He says the dairy giant is paying farmers 50 cents too much for milk.
Fraser says that adds up quickly, to around $750 million too much every year.