The farm-gate milk price forecast has dropped five cents, to six dollars
seventy per kilo of milk solids.
Along with the lowered price - there is no further dividend payment for the
second half of the year.
Fonterra Shareholders' Council Chair Duncan Coull says it's an
unacceptable situation.
He says the previous price forecast earnings was always a stretch, which is
what Fonterra has realised before making the disappointing announcement.