Shareholders of the West Coast co-operative have also been told to expect at least two more seasons of low payouts.
The revision was down from last month's prediction of $4-$4.10 and in line with Fonterra's forecast milk price, which sits at $3.90.
The main driver remained the global oversupply of milk, compounded by the ongoing high availability and aggressive approach by the European dairy market, Westland chief executive Rod Quin said in a statement.
Mr Quin and chairman Matt O'Regan recently returned from Europe, where they met customers, farmers, processors, traders and industry advocates.
‘‘The clear and consistent message we received is that European milk growth will be higher and more aggressively promoted by European farmers and processors than expected, both within Europe and, more concerning to New Zealand, the international markets,'' Mr Quin said.
There were indications the oversupply would correct itself but not quickly, he said.
While the pair had expected European processors and farmers to already be feeling some economic pain which might cause them to reduce production, that was not the situation for most.
On the demand side, the view was consistent that even if Russian sanctions were lifted, there would be little increase in demand as consumers had shifted to cheaper cheese alternatives and incomes for many Russians had been hit by the lower oil prices.
Chicago's Brian Rice, founder of brokerage firm Rice Dairy, and Melbourne international banker J.
T. McFarlane will address Fonterra farmers at a series of Grow Your Mind Seminars next month.
They will present their views on the drivers of current volatility in global commodities and deliver insight and stimulate discussion on how to manage the on-farm effects of the dairy downturn.
A seminar will be held at Forsyth Barr Stadium in Dunedin on April 14, starting at 7pm.
