Dairy Farms NZ - likely to list on the NZ stock exchange, has been given permission to buy up South Island farms.

Weakening world dairy prices have pushed Fonterra this morning to announce a cut in its payout to farmers.

Leading international credit rating agency has downgraded its outlook for New Zealand's economy.

Fonterra chief executive Theo Spierings said more pain lies ahead for farmers as dairy prices continue to weaken and as oil prices plummet.

Futures pricing is pointing to dairy prices flattening at tomorrow's GlobalDairyTrade auction as the sector continues to grapple with the same issues that held sway last year - oversupply and low....

New Zealand's second largest dairy processor has reduced its milk payout by 30 cents to an average price of between $4.00-$4.30 per kilogramme.

From the flag debate to the outrage surrounding the TPPA, this year the government was at the centre of the country's three biggest PR challenges.

Dairy prices finished the year on a slightly firmer note at this morning's GlobalDairyTrade auction, the GDT price index gaining by just 1.9 per cent.

The Reserve Bank has warned defaults on dairy loans will be likely as cash-flow shortage estimated at $1/kgMS.

Fonterra has maintained milk price at $4.60 per kilo, but scrapped a farmer support scheme.

Pressure is mounting on Fonterra to cut its farmgate milk price forecast at this week's board meeting, but it's looking like a close call.

Animal welfare group SAFE placed a graphic advertisement to shame NZ's dairy industry in the Guardian newspaper.

'Is our dairy industry built on cruelty?" That was the question posed by TVNZ's Sunday programme which broadcast evidence covertly filmed by FarmWatch and Safe activists.

Fonterra has signed a deal with an Australian infant formula plant.

Fonterra's board and top management faced a tetchy reception at the annual meeting from shareholders looking at two straight years of low milk prices.

Fonterra has affirmed its guidance for the 2016 milk payout to farmers, although chairman John Wilson said it was dependent on next year's global dairy prices.

The August-September price bubble has popped, according to a dairy broker.

An improved financial performance from Fonterra over the first quarter is serving to at least partly counterbalance a decline in global dairy prices.

There's some good news from the dairy sector today, with Fonterra saying its financial performance is improving.

Consumer and food service came in at $408 million, up 216 per cent on the previous year's.

Bank of New Zealand cut its forecast for Fonterra Cooperative Group's payout to farmers this season amid continued weakness in dairy prices.

Fonterra boss Theo Spierings wasn't mincing his words this week when asked about rival Synlait Milk's moves to sell cut-price infant formula in China.

Top economist says "racist attitudes" towards Chinese immigration and investment could damage a relationship with China that promises to deliver "big waves".

Fonterra chief executive Theo Spierings says losing Chinese market share to European dairy competitors is a concern for New Zealand.

Any chance of an upgrade in Fonterra's farmer payout became more remote today after a big drop in world dairy prices.

Fonterra's Sri Lanka business has fully recovered after a 2013 food safety scare sparked public protests and forced the temporary closure of its operations there.

Fonterra said it had sold its 9 per cent stake in Australia's Bega Cheese, which it has held since 2013, for A$74 million.