Fonterra Australia has been selected as the preferred supplier to process Woolworths "Own Brand'' milk in Victoria for the next 10 years

A substantially lower payout from Fonterra for 2014/15 looks likely after international dairy prices dropped sharply at yesterday's international dairy auction, economists said.

Prices have plunged nearly 9 per cent in the latest overnight global dairy auction. It is the fourth consecutive fall in prices, with average prices falling 5.2 per cent on March 18.

New research has stoked the health and nutrition controversy over "A1" cows' milk.

Fonterra's farmer members will be offered two opportunities to lock in the price paid for a percentage of their milk in the 2014/15 season.

Fonterra has posted a 53pc drop in interim net profit as high dairy commodity prices hit the dairy co-op's margins.

Much of the recent focus on sending milk to China has been on Justice Minister Judith Collins.

Dairy pervades the economy and the cultural landscape - our obsession with flat whites, free milk in schools and even our political scandals, as witnessed last week.

When Prime Minister John Key heads off to China tonight, it will be as much about talking to China's mothers as talking to its leaders.

Fonterra said it had accepted charges laid against it by the Ministry for Primary Industries over events that led to last year's market recall of whey protein concentrate.

Fonterra says it has accepted charges laid against it by the Ministry for Primary Industries over events that led to last year's recall of whey protein concentrate.

New Zealand commodity prices rose to a record in February, as cheese prices surged to a six-year high.

Fonterra has raised its forecast payout to farmers to $8.65 per kilogram of milk solids as global demand for milk powders remains strong.

Dairy product prices recorded their biggest drop since early November in the latest global auction, with the volume sold falling to an eight-month low.

Fonterra is calling for improved lab-testing, saying the Environmental Science & Research laboratory lacked the capacity to identify an E.coli bacterium in cream.

My heart sank when I heard about Fonterra's idea to reduce the dairy industry's impact on our environment, writes Sue Kedgley.

Ground work preparations are well under way on the new Fonterra headquarters site in the Viaduct Harbour area on the corner of Fanshawe St and Halsey St.

French dairy giant Danone's Nutricia unit recalled just $25.7 million of infant formula when it was caught up in Fonterra's false food alarm last year.

Dairy giant Fonterra has confirmed it is close to reaching a commercial deal with Auckland Council.