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Fonterra has for the first time passed all its forecast milk price rise to its cash-strapped farmer suppliers.
Cheese prices have fallen to their lowest level in almost nine years in the local market, with overall food prices dragged down by cheaper dairy products.
Fonterra's new-season forecast farmgate milk price is "conservative" but the co-op expects the market to rebalance within 6-12 months, says Fonterra chairman John Wilson.
DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast farmgate milk price of $4.25/kgMS for the 2016-17 season.
New Zealand's second biggest dairy cooperative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 - $4.95/kgMS.