New Zealand's largest exporter announced an opening forecast farmgate milk price of $7 per kilogram of milk solids for the 2014-15 season - matching the opening forecast provided 12 months ago at the start of the current season.
The co-operative is forecasting production for the new season of 1.6 billion kg ms, up 2% on the current season forecast.
Mr Easton said the new farmgate price remained historically high, matching the co-operative's opening price of the previous season.
''It's not the big blow to the economy you may think because the payout is down. Exports will still grow because of increased production, although the value may be down slightly.
''However, increased imports to keep up with our booming economy will offset the reduced value and I don't expect there to be much impact on the economy.''
Asked about the regional effect as Otago-Southland dairy farmers faced reduced income, Mr Easton said the revised 2013-14 price of $8.40kg ms was a bonus, and well above the long-term forecast.
Estimated costs were about $4.20kg ms to $4.50kg ms around Otago plus perhaps $1 more for those who were more heavily indebted.
So $7 was still very profitable, he said.
There would still be a boost locally with the current payout as farmers paid off debt, bought new equipment, invested money or bought the farm next door.
''The forecasts are just an estimate at a particular point in time,'' Mr Easton said.
ANZ chief economist Cameron Bagrie said on the face of it, the fall in the milk price was a drag on the economy over the next 18 months of about $2.6 billion, or 1.1% of GDP.
However, that dynamic was exaggerated.
The coming year's milk price forecast was still the fourth highest on record if achieved and the dividend still needed to be added.
''From a profitability and cash flow point of view, farmers will still be in a very good position in the coming 12 months. In fact, cash flow is likely to be very similar to the past 12 months.
''A stellar productivity story is not hitting the headlines. It is lifting output and also helping keeping the cost line contained which has typically exploded in a good payout year.''
While the dairy payout grabbed the headlines, it should be noted Fonterra was still pushing forward in several areas.
Such subtleties should not be overlooked as they supported the medium-term picture, Mr Bagrie said.
Fonterra was restructuring its Australian business as well as considering further acquisitions to expand its footprint in targeted segments.
It had already restructured its South American business to focus on wealthier segments and consumers in places such as Brazil.
Construction had started on a blending and packing plant in Indonesia - Fonterra's largest investment in new manufacturing in Asia in the past 10 years.
Also, there was more corporate responsibility being shown on issues from the affordability of dairy products for New Zealand consumers through to environmental issues, Mr Bagrie said.
Fonterra chief executive Theo Spierings said the shift in supply and demand during the past few months showed volatility continued to exert a strong influence over the global outlook for dairy.
''Dairy commodity prices have come off the peak reached in early February this year as global supply and demand have rebalanced.''
There was currently more milk available for the international market to absorb.
Fonterra expected demand from China to remain strong. In Russia, there would be pressure on the balance between imports and local productions. Those factors were expected to continue influencing the supply-demand balance, he said.
Volatility remained an issue and the revised forecast down to $8.40 reflected the recent fall in global dairy commodity prices, as well as the impact of currency movements.
The New Zealand dollar had remained firm, despite the weaker auction results.
The exchange rate had moved from US83.5c to sit above US85.5c for the past two months.
The forecast farmgate milk price change for the current season did not mean any revision to the June payment of the advance rate schedule.
The 25c net reduction would be spread over the July to October payments.
At a glance
• Opening 2014-15 forecast of $7kg ms.
• Opening forecast remains historically high.
• Revised 2013-14 forecast of $8.40kg ms, down 25c.
• Higher production will offset reduced payout.
