China's downturn and conflict in the Middle East remain front of mind for Fonterra.

The dairy co-op is forecasting a Farmgate Milk Price midpoint of $8 next season, just up from its current season forecast of $7.80.

It says global conditions remain volatile, and demand from China is taking a while to recover.

Fonterra Chief Executive Miles Hurrell says Middle Eastern markets increased their stockpiles last year and won't be buying as much this year.

"We're talking geopolitics here - things aren't getting any easier out there, you just read that in the headlines or any of the international press that's out there. We need to be mindful of that."

LISTEN ABOVE