Here's how the company could boost protein sales.
The class action claim was brought by Australian farmers over a cut in milk payouts in 2016.
Fonterra's chief executive says the downgrade is due to multiple recent factors - including short-term impacts on global demand for dairy products.
"It really demonstrates how important the topic was to farmers and their belief in the company."
Fonterra forecasts payout will drop by up to 50 cents a kg