He said there was strong underlying demand and a recent lift in whole milk powder prices at the Global Dairy Trade auction was a positive signal, reversing the recent easing in prices driving the farmgate milk price.

Strong offshore prices for protein, as reflected in the recent increase in European Union and United States milk prices, mean the co-op’s protein portfolio had been performing well, he said.

“This sustained period of favourable pricing relativities between our protein and cheese portfolios and whole milk powder is the main driver for the increase in the FY23 earnings guidance range.

‘‘If these unprecedented conditions were to continue for a further extended period this could have an additional positive impact on forecast earnings.’’

Mr Hurrell said market conditions were expected to vary, but the co-op’s extensive portfolio of products allowed it to still capture value.

He said the co-op was comfortable with its contracted rate for the 2023 financial year, particularly for its protein products, at this stage of the season, but it was still ‘‘early days’’.

“Our strategy is based on growing demand, constrained supply and shifting our farmers’ milk into higher value products, all of which are currently being realised.”

Mr Hurrell said the reduction in milk collection due to poor weather had caused a slow start to the season, most recently seen with floods in the Far North and top part of the South Island.