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.

Dairy prices have plunged in the latest world dairy auction, taking the Kiwi dollar down with it.

In submissions to the Commerce Commission, Fonterra's competitors say there is insufficient competition to deregulate.

The Chinese dairy firm partially owned by Fonterra has been suspended from trading amid the Chinese stock market turmoil.

Accolades for Craig Norgate rolled in yesterday from the rural and corporate sectors after the high-flying executive died suddenly in London.

The family of Fonterra’s first chief executive Craig Norgate may have to wait more than two weeks before they can bring the 50-year-old’s body home.

Shares in Beingmate - the Chinese company which is 18.8pc owned by Fonterra - have halved in value over the past three weeks.

The New Zealand dollar fell after prices for the nation's largest commodity export declined in the latest GlobalDairyTrade auction overnight.

The price for NZ's key dairy export, whole milk powder, is set to decline further at tonight's GlobalDairyTrade auction.

MP says cost to Kiwis unacceptable as Fonterra, supermarkets point finger at one another.

Prime Minister John Key says overseas markets are causing high prices for milk at home.

Fonterra has once again successfully tapped into the so-called dim sum bond market in Hong Kong by this week raising 1 billion renminbi ($230 million) through a five-year bond.

More falls in dairy prices are expected in the next few months, but futures market pricing suggests a mild bounce-back might take place at tomorrow's GlobalDairyTrade auction.

Opposition parties have labelled Fonterra chief executive Theo Spierings' $4.18m salary as "absurd".

Fonterra chairman John Wilson says he knows farmers are increasingly anxious about low farm-gate milk prices.

Media were told that hundreds of Fonterra jobs were to be axed, hours before staff heard the news.

Fonterra management had no choice but to restructure, writes Liam Dann. But it is cosmetic surgery for a patient that requires much more fundamental medical attention.

Highly-paid head office managers are expected to be in Fonterra's sights as it slashes hundreds of administrative jobs to cope with falling global milk prices.

Market analysts and dairy industry players say Fonterra needs to improve its performance and while job cuts are unfortunate, big changes are required.

Fonterra says it will lay off hundreds of its 1500 head office staff in a major review following the decline in dairy prices.

AgriHQ forecasts increased milk production and a higher forecast payout to dairy farmers will bolster the economy.

Danone Nutricia, the French-owned infant formula maker, has reported a full-year loss it attributes to the continuing effects of the Fonterra Co-operative Group's botulism scare in August 2013.