Chairman John Wilson said the decision to maintain the forecast Farmgate Milk Price reflected the longer term outlook for international prices for dairy.
"Current market views supported by our own forecasting indicate commodity prices improving later this year or in early 2015, with global demand for dairy continuing to grow year on year.
"While the long-term market fundamentals remain sound, we need to recognise that the current market conditions are difficult and there remains further downside risk.
"There is still volatility. This reflects challenges with supply and demand following a good dairy season globally. Given these factors, the forecast is our best judgement at this time.
"It is early in the season, and it is important that our farmers continue exercising caution with their farming business budgets. The reality is, we expect to see ongoing volatility, and we will keep our farmers informed as we move forward. If market conditions change our view, we will update them.
"We will be providing an update on business performance when we announce our Annual Result on 24 September 2014," said Mr Wilson.
Fonterra is required to consider its Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).