Fonterra recently announced its forecast payout of $4.05 per kg of milk solids for the 2006/2007 season - 2c down on last season.

Federated Farmers and the Ministry of Agriculture say while there has been a jump in production in recent years, farmers are coming under increasing pressure as they budget on less money.

Rotorua/Taupo Federated Farmers of New Zealand president Gifford McFadden said farmers were wanting to see a bigger return for their labour.

"There is no skill on the Fonterra board. They have not shown they can do anything for us. They have had five or six years and all they have done is play monopoly overseas with our money. They have to add value to our milk so New Zealand dairy farmers have a future as farmers," he said.

Rising fuel costs and inflation had put extra pressure on them as they tried to work within budgets.

"Farmers are really unhappy with the low payout. All their costs have gone up, they are producing more milk and yet their returns are less. They are wanting more for their investment and their hard work. Farmers want money in their pockets," he said.

Source: The Daily Post