Fonterra paid its former chief executive, Andrew Ferrier, an $8.2 million "golden goodbye" when he left last year.

Fonterra said its net profit fell by 19 per cent to $624 million in the 2011-12 year to July 31.

World dairy prices were up again in the latest overnight auction, the fourth straight gain.

Dairy giants are coming under increasing pressure to reveal how much of a controversial "snot-like" by-product they put in their milk.

World dairy prices rose to the highest level since early April in last night's online auction, for the third straight gain.

The high Kiwi dollar has pushed dairy giant Fonterra to slash its forecast to its farmer members, despite world dairy prices rising due to drought in the US.

World dairy prices fell 0.9 per cent in Fonterra's latest overnight auction.

Work is needed to rebuild trust between Fonterra management and its farmers.