Payout prices for milk have been slashed by 12 percent because of reduced demand in China.
Fonterra has changed its forecast range to $6.25 - $7.75 a kilo of milk solids, with a midpoint of $7 per kg.
Chief Executive Miles Hurrell says it reflects a surplus of fresh milk in China and reduced near-term whole milk powder import requirements.
Federated Farmers Dairy Industry Group chair Richard McIntyre spoke to Corin Dann.
