Dairy farmers struggling with the industry's global downturn are getting a restrained payout forecast from Fonterra.

The company just announced its predicted farmgate milk price for the next season of $4.25 per kilogram of milk solids.

That's an increase of 35c on the current season's payout.

But the shareholders' council chairman says the announcement will be tough for farmers to hear.

He says it reflects the reality of the market, and Fonterra's also citing industry limitations for the figure.

The company's expecting global dairy pricing to gradually improve over the coming season but warns farmers to be prudent.