Fonterra has reported a lower half-year profit as higher milk prices raised its costs and cut its margins.
Its net profit for the six months ended January was $364 million, down seven per cent on last year.
Revenue rose nine per cent to about $10.8 billion as demand around the world remained high.
However, record milk prices have raised production costs for Fonterra's consumer products and eaten into its margins.
Earnings were also affected by lower milk production in New Zealand.
It has confirmed it expects a record milk payout to farmers of $9.60 per kilogram of milk solids for the current season.
Global dairy prices are at near record levels despite slipping at the latest auction.
Last month the dairy co-operative has suspended shipments of its products to Russia shortly after its invasion of Ukraine.