Ms Swales said although Fonterra had been warning its suppliers to be cautious and conservative with budgets this season,it could have done more.
"What the most important thing is here,for the whole industry,is around the price signals and having a more transparent model as to what is impacting the milk price,"Ms Swales said.
"If I reflect,I would say maybe we should have driven that harder this season.
"We are well placed as a global leader in dairy to tap into the signals that are coming from the market. That is one thing we will be looking to do better next season. We will try to give all farmers clearer signals about what is happening."