March 23 (Reuters) - New Zealand's Fonterra Co-operative Group raised its full-year earnings outlook on Monday after posting a steady rise in half-year profit, while flagging potential disruptions from the Middle East conflict to supply chains and costs.

The dairy producer said the conflict could increase its inventory levels and costs in the second half of the year, while contributing to volatility in global commodity prices.

Fonterra raised its full-year earnings guidance for continuing operations to 50-65 NZ cents per share from a prior range of 45-65 NZ cents apiece.

The upgrade reflects improved global commodity prices as well as strong underlying margins and cost control, the company said.

Fonterra declared an interim dividend of 24 New Zealand cents per share, up from 22 NZ cents a year earlier, and confirmed a special Mainland dividend of 16 cents per share, representing 100% of the unit's fiscal 2026 earnings while under its ownership.

The world's biggest dairy exporter's reported profit after tax was NZ$750 million ($436.05 million) for the six months ended January 31, up 3% compared to NZ$729 million a year earlier.

Fonterra said performance was driven by growth in higher-value segments, with its ingredients business channel delivering an 11% return on capital and its foodservice channel 12.6%, supported by strength in its protein portfolio and improved pricing.

The company also raised its annual forecast range for farmgate milk price - the price it pays to farmers for milk - to NZ$9.40-NZ$10.00 per kilogram of milk solids (kgMS), from prior expectations of NZ$9.20-NZ$9.80 per kgMS.

Chief Executive Miles Hurrell said strong milk flows, including record volumes from New Zealand's South Island, along with adverse weather, had pressured operations, but the company was able to manage the impact.

Fonterra had agreed to divest its global consumer and related businesses to French dairy major Lactalis, with the deal slated to complete by the end of March 2026.

($1 = 1.7200 New Zealand dollars)