“In particular, interest rates and inflation have lifted well above our assumptions, as have commodity prices in response to the continued strong demand for dairy.

“These near-term headwinds have the potential to impact some of the co-op’s targets,” Hurrell said.

“We’re still on track for our 2030 financial targets, but the last few months have shown that there will be some bumps along the way. ”

Last year Fonterra spelled out its long term aims, including returning $1 billion to shareholders, an average milk payout for the decade of $6.50-$7.50 a kilo of milk solid, and lifting its operating profit between 40-50 percent.

Hurrell said what happened beyond next year was considerably less certain, with a wide range of possible outcomes.

“As we look out to 2030, the fundamentals of dairy – in particular, New Zealand dairy – look strong and we continue to make good progress against our long-term aspirations.

“We are growing our high value, specialty ingredients business, with Active Living expected to deliver growth year-on-year. ”

Hurrell said long serving senior executive Kelvin Wickham would be stepping down.

Forsyth Barr analyst Matt Montgomerie said the latest earnings guidance was positive.

“The guidance range is unsurprisingly wide reflecting the ongoing volatile backdrop but with elevated milk prices,” Montgomerie said.

“We view this as a solid outcome, highlighting the ongoing robust earnings execution from the co-op.”