Westland Milk Products has confirmed its payout for the 2015/16 season will be $3.87 a kilogram of milk solids.
Chair Matt Regan said the payout was below the break even point for most farmers, but they had predicted with recent cash forecasts that it would not go over $3.90.
Mr Regan says they maintained farmers cash flows by starting the season with a higher advance rate of 3.80 per kilogram of milk solids and holding it through the season.
Westland Milk Products is forecasting a milk price for this season of $4.55 - 44.95 a kilogram of milk solids, with an advance payout rate of $3.80 from September through to June.
Mr Regan said the board recognised that the market was moving, but because of price volatility they were staying cautious.
Fonterra revised its forecast payout last week to $5.25 on the back of improved prices and falling production around the world.