Hokitika-based Westland Milk said its farmer payout for 2014-15 would remain at $4.90-5.10 per kg of milk solids but that its suppliers could look forward to a $5.60 to $6.00 per kg payout next season.
The payout numbers are before retentions - funds held back to develop the company.
Westland is New Zealand's second biggest dairy co-operative. The biggest, Fonterra, is expected to release its farmgate milk price forecast for next season tomorrow.
Chief executive Rod Quin said Westland's 2015-16 budget represented a balance of many factors. "While it might be more optimistic than some in the New Zealand dairy industry, it is our considered forecast of the expected outcomes for the approaching season," he said.
While Westland expected dairy prices to recover as the 2015-16 season progressed, Quin said they were expected to remain relatively low due to ongoing milk supply pressure from the United States and the European Union.