WELLINGTON, May 5 (Reuters) - Fonterra Co-operative Group FCG.NZ said on Thursday it would cut its payout Australian farmgate milk price to A$5 per kgMS from A$5.60 for the current season.
"The price change better reflects the reality of the supply and demand imbalance that is affecting global dairy commodity prices, compounded by the recent strength of the Australian dollar," Fonterra said in a statement.
The world's largest dairy exporter would also offer Australian farmers interest-bearing support loans of up to $0.60 per kgMS that would be repayable from 2018.
The company said it was maintaining its current earnings guidance range of NZ$0.45 to NZ$0.55 per share.