Murray Goulburn managing director Gary Helou will step down from his role after the dairy co-operative slashed its farmgate milk price to $4.75-$5 a kilogram milk solids.
Mr Helou will leave the top job less than a year after Murray Goulburn's partial float on the ASX, which raised $500 million from investors.
The company released a trading update on Wednesday morning stating it now expected a net profit after tax of between $39 million and $42 million. In February the company predicted a net profit of about $63 million. That was down from its prospectus forecast of $89 million.
The statement said the board was "very disappointed" the company could not hit the milk price targets in its float documents from May last year or as revised in February.