The midpoint has reduced 20-cents, from eight-dollars-50 per KG of milk solids, to eight-dollars-30.
Fonterra Chief Executive Miles Hurrell says short-term demand has dropped, the Skim Milk Powder price has fallen, and the Whole Milk Powder price hasn't lifted as expected.
He says milk production in the Northern Hemisphere is picking up, and demand for whole milk powder in China hasn't returned to expected levels.
