A downturn in the demand has led to Fonterra cutting its forecast milk prices. The farmer-owned co-operative reduced and narrowed its 2022/23 season forecast range from $8.50 to $9.50 per kilogram of milk solids with a midpoint of $9, to $8.20 to $8.80, with a midpoint of $8.50. At the same time, it updated its forecast milk collections for the 2022/23 season to 1465 million kgMS, down from its previous forecast of 1480 million kgMS. Fonterra chief executive Miles Hurrell says the revised forecast reflects  softened demand and while Fonterra is encouraged by increased buying from China, it is too soon to determine the extent of the impact this might have on the rest of the season.