World dairy prices showed signs of levelling off today with the GlobalDairyTrade price index gaining 1.4 per cent at the fortnightly auction.

New Zealand's "rock star" economic growth of the past couple of years has been attributed to two things: high dairy prices and the Christchurch rebuild.

New Zealand commodity prices fell for a seventh consecutive month to an 18-month low in September, led by declining dairy prices.

Farmers are preparing for an austere 2014/15 season after a major drop in prices at last night's GlobalDairyTrade auction, says Federated Farmers boss.

Tatua, the small Waikato-based dairy co-operative, did well over the 2014/15 dairy season while its far bigger competitor, Fonterra, did not. The reason - powder.

Fonterra has just announced a cut to its forecast farmer payout - from $5.30 a kg of milksolids - down from $6.00.

Shares in Chinese baby-milk maker Beingmate Baby & Child have rallied sharply since Fonterra entered an alliance with the firm, which includes the Kiwi dairy giant buying a 20 per cent stake in its new partner.

Danone Nutricia, one of the infant formula companies caught in the Fonterra whey protein contamination scare, says it is still feeling the effects of the incident one year on.

Dairy farmers in this country can expect to come under financial pressure if milk powder prices remain low and tensions in Europe continue to mount, say economists.

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder.

New Zealand commodity prices fell for a sixth straight month in August, taking the index to a 17-month low.

Fonterra is pinning its hopes on a tie-up with Chinese infant formula giant Beingmate as it pushes into China's lucrative baby milk market.

Westland Milk Products, the Hokitika-based dairy cooperative, has overtaken rival Fonterra in cutting its forecast payout to farmers.

Fonterra says it plans to spend about $1.17 bon taking a 20 per cent stake in China's Beingmate Baby & Child to boost its baby formula aspirations there.

Danone is fighting to keep its New Zealand lawsuit against Fonterra live and is appealing the High Court putting the case on hold.

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar.

Commodity prices fell for a fifth straight month, led by whole milk powder, reflecting a build-up of inventory in China and strong local milk production.

A sharp reduction in Fonterra's milk price will put the squeeze on the industry and rural communities will feel the brunt of the economic impact.

Fonterra has reduced its latest forecast farmgate milk price $7.00 to $6.00 per kgMS - a total drop in payments to farmers of $4.3 billion from last season.

Fonterra says it's 'realigning' its packing operations at its Canpac plant in the Waikato - and 110 jobs may be lost as a result.

French food giant Danone says a High Court judge's decision halting its legal action against Fonterra will create undue delay.

Fonterra has successfully put Danone’s legal action against it in New Zealand courts on hold.

Big changes lie ahead for the international dairy trade when the European Union (EU) dismantles its 30-year-old quota system next year.

Agriculture reporter Jamie Gray looks at reasons why it’s not yet doom and gloom for the dairy sector following this morning's drop in global dairy prices.

The pressure is on Fonterra’s $7.00 a kg farmgate milk price forecast for this year after another sharp fall in international dairy prices overnight.