The Fonterra Shareholders Council is "broadly supportive" of plans for the co-operative to start sourcing milk from South Island suppliers who are not also shareholders.

A $6 billion drop in dairy farmers' incomes this season is a blow to the wider economy, no question, writes Brian Fallow. But it's not all bad.

The medium to long term outlook for NZ dairy farmers remains sound, despite yesterday's payout cut, says rural lender Rabobank.

Fonterra said it had launched a separate milk sourcing subsidiary - mymilk - to grow its market share in the South Island.

Fonterra plans to cut costs and defer some capital expenditure so that an improved dividend can at least partially offset a likely $6b decline in income for the sector.

The industry group DairyNZ estimates that one quarter of dairy farmers will have difficulty paying their bills if Fonterra's reduced farmgate milk price comes to pass.

Fonterra has this morning cut its forecast farmgate milk price payout to its farmers, with its chairman admitted it'll put pressure on farm budgets.

Neither Fonterra nor the Ministry for Primary Industries emerged unscathed in the final report on the botulism scare that rocked the New Zealand dairy industry last year.

There is one salient comment in the report by Queens Counsel Miriam Dean into the WPC80 incident that ought to give Fonterra's directors and shareholders cause for concern: "A company that is....

Wholemilk powder prices continued to decline while other products showed signs of improvement at this morning’s GlobalDairyTrade auction.

ANZ's commodity price index fell for the ninth month in a row in November, as milk powder prices hit five-year lows.

Falling dairy prices have begun to undermine one of the foundations of the economic upswing, rising national income from the most favourable terms of trade.

Tomorrow will see the last GlobalDairyTrade auction before Fonterra releases its revised farmgate milk price forecast for 2014/15.

Fonterra says it had started a consultation process to gauge interest in a proposed equity partnership trust for its farmers.

Global dairy markets have plummeted but New Zealand beef prices have continued to hit record highs, while sheepmeat prices have stayed firm, Rabobank says.

Fonterra now looks certain to drop its farmgate payout to its farmers, after prices fell in the latest overnight dairy auction.

John Key says major companies have been asked not to exploit the gap left by other countries' trade sanctions on Russia because to do so would be a "terrible look" for NZ.

The Fonterra Shareholders' Fund should be able to raise its 2015 dividend forecast given it expects to pay farmers less for their milk.

Fonterra Co-operative Group shareholders used their annual meeting in Palmerston North to raise concerns over the reduced 2015 milk payout.

International dairy prices showed signs of stabilising at this morning’s GlobalDairyTrade auction.

New Zealand commodity prices fell for the eighth consecutive month in October, to the lowest level since March last year.

Bank of New Zealand is watching dairy prices closely but has faith in farmers' ability to manage finances through dips in the commodities cycle, says chief executive Anthony Healy.

The head of Fonterra says the growing Ebola epidemic could cost the company $150 million.

Fonterra said it plans to build two new milk powder driers at its Studholme site in South Canterbury.