Dairy giant Fonterra has been given permission to sue the owners of the Tamahere coolstore that exploded in 2008 for $25m worth of cheese that it lost in the blaze. The blast killed one firefighter and injured seven others.

The New Zealand dollar climbed back above 77 US cents as food inflation fears prompted investors to seek out commodity-linked currencies.

The New Zealand dollar will probably test US78c this week as the currency rides the wave of stronger prices for raw materials.

Dairy giant Fonterra is boosting its billion dollar forecast payout to farmers.

Fonterra has this morning announced an increase in its payout forecast for the 2010/2011 season by 30 cents per kilo of milk solids to $6.90.

More than $1 billion is pumped into the economy every time Fonterra boosts its payout to farmers by $1, says a report which confirms the dairy industry's importance to New Zealand's finances.

New Zealand's 4.4m cows are providing 26pc of our exports, and the money earned flows right through the economy to urban communities, according to new research.

NZ cannot afford to lose control of its land, says Fonterra chairman Sir Henry van der Heyden.

Fonterra has created a range of products which it thinks will fill a void for tough-guy snacks.