Fonterra's midpoint forecast payout for the current season is now nine-dollars - more than 10-percent down on last season's final payout.
Global prices fell steadily for much of last year, but picked up slightly last week.
Chief Executive Miles Hurrell says what's next depends on whether price slowdowns in Europe and the US mean supply will drop.
He says international demand is quite robust - with good demand in China as it comes off the lows of a couple of years ago.
Hurrell says supply chains are relatively empty internationally, particularly in Middle Eastern and South-East Asian markets.
