The dairy industry will pump $1 billion extra into the economy based on next season's Fonterra milk price forecast, says Westpac bank.

Fonterra farmers have been told their average cheque for next season may soar to record heights.

Fonterra today announced an opening forecast payout for the 2010/11 season of $6.90-$7.10 and said the full payout for the season might top $8.00.

Sir Henry van der Heyden has urged dairy farmers to shore up their businesses against possible future volatility.

Farmers' economic confidence improved in the first months of 2010, boosted by sheep and beef prices.

Fonterra has announced it is increasing its forecast milk price payout by 40 cents, to $6.10 per kg.

In 2001, Consumers Institute head David Russell warned food prices were likely to rise once the supermarket industry shrank from three big players to two.

Investors over the age of about 35 may remember a non-alcoholic whiskey called Claytons.

Fast food retailer Restaurant Brands not only served up a strong result this week but has also had the best performing share price in the last year.

The Fonterra Shareholders’ Council has refuted media headlines that imply the public will be able to buy into the farmer-only co-operative.

Fonterra fears its profits and market share will both take a hit if it doesn't forge ahead with planned changes to its business.

Fonterra shareholders will be able to invest in shares up two times their annual production rate, almost double that of current rates.

Fonterra has revealed details of its plan for dairy farmers to trade shares amongst themselves.