Shareholders in Australian dairy co-operative Murray Goulburn (MG) have voted in favour of a Fonterra-style capital structure that will see its units trade on the ASX.

Tim Groser's warning that the dairy sector would effectively have to guts it out during a period of low milk payouts was timely.

International dairy prices fell for the fourth time in a row at this morning's GlobalDairyTrade auction.

New Zealand commodity prices had their biggest decline since the height of the global financial crisis in 2008, led by falling dairy product prices.

Fonterra has fallen into line with market expectations after oversupply and extreme volatility on world dairy markets prompted the co-operative to once again lower its farmgate milk price.

Fonterra says its milk collection in New Zealand for the 10 months to March 31 reached 1431 million kg of milk solids - 1 per cent higher than for the same period last season.

International dairy prices look likely to head lower at this week's GlobalDairyTrade auction, according to futures market pricing.

Units in the Fonterra Shareholders' Fund fell to their lowest point since listing on the NZX in 2012 on the back of growing farmer and investor unrest.

Dairy product prices declined in the latest GlobalDairyTrade auction, led by a slump in prices for butter milk powder and whole milk powder.

Almost 2000 people are being viewed as persons of interest in the investigation into the threat to contaminate infant formula with 1080 poison.

The dairy industry can weather the prospect of increased production from the EU once quotas are lifted on April 1, says the chief executive of the farmer-funded DairyNZ.

Economists expect Fonterra to stick with its $4.70 per kg farm gate milk price forecast for 2014/15 when it reports its first-half result tomorrow.

All of the samples of infant formula tested by police after being suspected of possible tampering have tested negative for 1080.

Authorities are no closer to saying if the threat to poison baby formula with 1080 was a hoax, or who wrote the blackmail threats - even with 30 staff on the case.

Police are testing infant formula after a number of tins were found with pin-pricks in packaging lids.

Farmers will be looking to Fonterra's dividend to at least partially offset what is likely to be a low farmgate milk price this season after dairy prices fell by 8.8 per cent.

Just when you thought it was safe to venture into the dairy market, prices drop by 8.8 per cent.

International dairy prices fell by 8.8 per cent at this morning's GlobalDairyTrade auction - the first sale to be held since the 1080 infant formula scare.

Wellington Beltway denizens often refer to MFAT as standing for the Ministry for Fonterra and other Trade.