The dairy sector is unsure what to make of Fonterra's upcoming announcement.

Shares in the dairy giant have been placed on a trading halt, here and across the Tasman, as the company goes over its annual financial statements for the financial year just passed.

It says it's found there may be a difference between the final figure and the earnings guidance it's previously given to the market.

Waikato University agribusiness expert Stuart Locke told Mike Hosking the announcement is alarming, and has caught everyone by surprise.

"I don't think anybody was expecting this and nobody seems to know which way it's going to go. Was there previous forecast on the high side or was it on the low side?

LISTEN ABOVE AS STUART LOCKE SPEAKS WITH MIKE HOSKING