New Zealand dairy giant Fonterra today (9 September) it now expects annual operating profit to come in at the lower end of its forecast amid falling dairy commodity prices.

Fonterra said a fall in prices means its 2014 operating profit will come in at the lower end of its previously-stated forecast range of NZ$500m-NZ$600m (US$413m-495m). It pointed to a significant reduction in global dairy prices with the Global Dairy Trade Price Index decreasing 45 per cent since February 2014″.

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Fonterra’s annual results will be announced on 24 September.

At the end of last month, Fonterra announced the launch of a joint venture with Chinese infant formula firm Beingmate in a bid to capitalise on growing local demand.