Fonterra faced questions over its drop in share price, flat earnings and sustainability at Monday's first annual meeting of its listed entity, Fonterra Shareholders' Fund, on Monday.
One unit holder in the fund asked if Fonterra's flat earnings in the past five years were due to the high price of milk.
But chief executive Theo Spierings said that the severe drought had the greatest impact on earnings this year.
"We just had headwinds in the last four months because of the drought. This is the biggest drought in the last 75 years, so it's quite exceptional."
Fonterra would announce a revised milk price forecast advance rate next week and give a dividend indication. However, it would not give a number on earnings, as it was too early in the season, he said.
