Fonterra still expects most dairy farmers to break even this season.
It's lowered the forecast farmgate milk payout midpoint for this season, from $10 to $9.50.
It follows a sharp drop in global dairy prices, sparked by a big lift in global supply.
Fonterra boss Miles Hurrell says while the forecast is well below last season's $10.16 payout, farmers should still be pretty happy.
LISTEN ABOVE
Take your Radio, Podcasts and Music with you
Get the iHeart App
Get more of the radio, music and podcasts you love with the FREE iHeart app. Scan the QR code to download now.
Download from the app stores
Stream unlimited music, thousands of radio stations and podcasts all in one app. iHeart is easy to use and all FREE