Fonterra has been ordered to pay an $183m fine to food giant Danone over the 2013 baby formula scare.
An arbitration panel in Singapore backed Danone's claim for compensation for damage to its business and lost earnings.
In response, Fonterra has cut its forecast dividend to 35 to 45 cents a share for the 2017/18 financial year, down from 45 to 55 cents.
Fonterra chief executive Theo Spiering has said the co-operative was disappointed with the ruling.
Watch Fonterra's media conference responding to the ruling here: