Westland Milk has announced another revision of its predicted payout range due to a decline in global prices.
The company has lowered the anticipated range for the 2018-19 season to $6.10 - $6.50 (previously $6.50 - $6.90).
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Westland Board Chairman Pete Morrison said the factors driving the revision were largely out of Westland's control, involving international market forces and an increasing abundance of milk supply globally.
"This, of course, will not be the news our shareholders want to hear," he said.
"However, we owe it to them to be transparent about our predictions. The last thing we want to do is over promise and under deliver."
Despite a good start to the season, internal factors are said to also be having an impact.
"The build up to peak milk period is higher than predicted and lasting for longer," Mr Morrison said.
"While this might appear to be a positive for the co-operative, the reality is that during peak our processing capacity means we have to produce mostly low value bulk commodity powders in order to ensure we can get the milk through."