Fonterra on Wednesday left its quarterly farmgate milk price forecast for the 2012/13 season unchanged at $5.50 per kg of milksolids.
The dividend forecast also remained at 40 - 50 cents per share.
The company said the forecast is based upon there being no substantial change in the exchange rate for the rest of the season - which ends in May.
If the New Zealand dollar rises against the US dollar, then the farmgate milk price may suffer.
In an update on milk supply, chief executive Theo Spierings said after a strong start to the season when production was initially up 6% on last year, the recent dry conditions have resulted in a slowdown.
Fonterra is now forecasting an increase of 1% in total milk production for the fulll season.
The dairy co-operative will also invest $100 million in a new Ultra High Temperature milk processing plant at Waitoa in Waikato, allowing it to double its UHT production over the next few years to satisfy growing demand in Asia.
