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.

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.

The price for New Zealand's key dairy export, whole milk powder, may drop about 5 per cent at this week's GlobalDairyTrade auction amid lacklustre demand.

China's decision to allow all married couples to have two children will be supportive for the New Zealand dairy industry, but only "at the margin", ANZ Bank said in a commentary.

Fonterra said its milk production hit a seasonal high of 86.9 million litres on October 22 - down 3 per cent from last season's peak.

September saw a 7.2 per cent decrease in milk production.

Fonterra's long-term credit rating has been cut by Fitch Ratings.

World dairy prices were down 3.1 per cent in the latest overnight auction.

Fonterra's milk production is close to hitting its seasonal peak.

Fonterra faces higher borrowing costs now its credit rating has been downgraded from "A" to "A minus".

Fonterra chairman John Wilson has hit back at attempts by former directors to trim the size of the board.

A businessman, 60, is alleged to have acted alone in blackmail scare that said infant formula would be poisoned.

Fonterra has named six candidates for its board at next month's election and pressure has emerged to reduce the number of directors.