The 1080 infant formula scare appears to have added to Fonterra's woes.

The cooperative has faced problems with its Australian operation, inventory overhang from the previous season and declining global dairy prices.

JMIS director Andrew Kelleher told Newstalk ZB's Andrew Dickens the market appears to be disappointed the issue wasn't disclosed earlier.

"They're one of our largest companies, so they're always come under a lot of scrutiny but it's fair to say there's a few grumblings in the market."

Meanwhile, extra supply at global dairy auctions could keep dairy prices down over the next three months.

Fonterra has increased the volumes it's sending to auction, after recent rainfall eased drought fears and boosted production.

Dickens it's likely to put a major dent in prices.

"That could put a bit of pressure on the prices of the NZX milk futures down quite sharply on Friday but at the moment, it doesn't look like it's set up for that auction go that well."