Russian sanctions and a lack of Chinese demand is clouding the outlook for Australia's largest dairy company.
Following the ban on Australian, European and US produce by Russia, the world's second largest dairy importer, Murray Goulburn has begun exploring new options to maintain exports.
The company behind the Devondale brand says one potential solution is the conversion of dairy goods into milk powders and selling them in Asia.
But managing director Gary Helou warned the change in trade flows could have an impact on prices.
"We have been seeing the weakening of prices over the last few weeks," Mr Helou said.
"The last week or so the sentiment from buyers is also weakening."
Australia's other major dairy trading partner, China, has also slowed its imports due to higher than normal inventory levels.
Mr Helou expects China to work through its supply and return to buying dairy products by mid-October, which should give the local market a lift.
The long-term demand for Australian dairy from Asia will remain strong, the company said.
Murray Goulburn made a $29.3 million net profit in the 2013/14 year, down 16 per cent from the previous year.
Although the company's profit fell, its farmers were paid a record price for produce, up 37 per cent to $6.81 per kilogram of milk solids.
Murray Goulburn's share of Australia's milk pool also increased, and now accounts for 37 per cent of the local milk supply.
The company is also continuing to pursue plans to list a trust on the share market.
The trust would give potential shareholders a chance to invest in Murray Goulburn, without voting rights.
Mr Helou said he hopes to put the issue to a vote by January or February, and if successful list the trust by mid-2015.
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