Fonterra Co-operative Group has revised its 2022/23 season forecast Farmgate Milk Price range from $8.50 - $9.50 per kgMS to NZ$8.20 - $8.80 per kgMS with a midpoint of $8.50.

The forecast milk collections for the season have been reduced to 1,465 million kgMS from 1,480 million kgMS.

Fonterra says the revisions are due to softened demand and cyclone Gabrielle and dry conditions in the South Island.

Fonterra also says it remains optimistic about the medium to long term outlook for dairy.