Fonterra effectively overpaid farmers last year, sapping funds available to pay farmers at the end of the season.

Dairy farmer can't believe there are people in the industry being ''paid millions'' who have led farmers "up the garden path a bit".

Fonterra chief executive Theo Spierings says farmers are "very strong and resilient" and he is confident low dairy prices will bounce back amidst market volatility.

Much of the available loans it will offer will likely pass straight to banks to meet debt-servicing costs, writes Fran O'Sullivan.

Dairy giant yesterday revealed its latest payout forecast, dealing a blow to individual farmers, and the wider economy.

$4.55 swing in forecast milk price paid to farmers over two seasons shows there's something wrong with NZ's dairy model, says Landcorp Farming CEO Steve Carden.

The country's biggest exporter has lowered its price from a previous forecast of $5.25 following sharp falls in whole milk powder prices.

Paparimu dairy farmer Craig Maxwell says farmers are worried about the survival of their farms.

A drop in the price of milk on supermarket shelves could be in store for New Zealanders - but not anytime soon, says supermarket chain Countdown.

DairyNZ says New Zealand milk production is expected to fall by 2 or 3 per cent this season as farmers focus on improving the efficiency of their farming systems.

Whole milk powder prices have dropped to their lowest level since 2008, putting more downward pressure on Fonterra's farmgate milk price forecast and reinforcing the market view that the Reserve Bank will cut interest rates twice this year to partly compe

Whole milk powder prices - key to determining Fonterra's farmgate mik price, dropped by 10.3 per cent overnight.

Fonterra chairman John Wilson's verbal sharp-shooting skills were put to good effect at the Trans Pacific Partnership (TPP) ministerial negotiations in Maui.

Fonterra's board will meet on Friday to review the farmgate milk price.

Fonterra says it sets itself high environmental standards despite being fined $362,000 in two separate prosecutions for Resource Management Act breaches.

Fonterra's has copped some flak for its performance, but chief executive Theo Spierings says the co-operative dairy giant would not deviate from its current course.

As milk prices fall, farmers keep waiting for the cycle to turn. But what if Fonterra's problems are longer term, asks Jamie Gray.

Westland will decide on its final 2014/15 payout in September.

Fonterra Co-operative Group has put on hold plans to develop an Equity Partnership Trust that would have given its 10,500 farmer suppliers access to investor capital to help them with the compulsory....

Pressure is building on Fonterra chief executive Theo Spierings as the dairy industry faces up to a winter of discontent, writes Liam Dann.

Jamie Gray writes: For Fonterra's farmers, investors and employees the severity of the dairy downturn will become clear early next month.

Having its main office in Auckland is a big part of the dairy giant's problem, writes Brian Gaynor.

BNZ has lowered its 2015/16 milk price forecast for Fonterra but says it expects dairy prices to recover late this year.

NZX dairy futures prices are trading at a discount to the physical market in the aftermath of a worse-than-expected GDT auction.

Dairy giant Fonterra cut 523 jobs yesterday - in a bid to cut its payroll bill by up to $60 million a year - on a day of bad news for the economy.

Hundreds of Fonterra employees and thousands of its farmer-shareholders have been dealt the twin blows of impending job losses and the prospect of a much lower farmgate milk price.

Chief Theo Spierings admits news unsettling for staff as co-op tries to reduce its payroll bill by up to $60m a year.

Liam Dann says axing 523 jobs may make financial sense to Fonterra's chiefs but the dairy slump is bigger than that.

Fonterra's board will consider its current farm gate milk price forecast for 2015/6 at its next meeting on August 7, a spokesman for the co-operative said.