Fonterra has drastically cut its forecast Farmgate Milk Price -- with the midpoint falling from eight-dollars-per-kilogram of milk solids, to just seven-dollars.
It's blaming reduced demand for whole milk powder from China.
Federated Farmers Dairy Chair Richard McIntyre says its a challenging time for farmers.
He says they've got high interest rates, high input costs and now a milk price well below the break even price.
