The world's largest dairy processor set NZ$5.25 a kilogram of milk solids as the initial forecast of the price it will pay, which was broadly in line with expectations.
However, it lowered its forecast for the current season, which close to ending, by 10 NZ cents to NZ$4.40.
Global dairy prices have plummeted by around 50 percent over the past year because of a rise in supplies and a sharp slowdown in buying by major customer China.