The Government is keeping close watch on the "big dry" in many regions and will consider drought assistance if conditions worsen, Agriculture Minister David Carter says.

Fonterra's whole milkpowder prices have fallen at auction for the first time in six months.

The science going on at AgResearch's new farm at Tokanui may help New Zealand's dairy farms run in a more sustainable fashion.

Fonterra is in talks to buy out its partner in the Saudi Arabian milk and cheese market, Saudi New Zealand Milk Products.

Half of Fonterra's farmers are expected to buy the additional shares being offered by from today, says Federated Farmers.

Milk powder prices on Fonterra's online trading auction have continued their upwards march.

Amnesty International is calling on Fonterra and the Government to condemn the executions of two people involved in the San Lu tainted milk powder scandal.

Nick Smith says he makes no apologies for using taxpayers' money to send two Iwi Leadership Group members to the upcoming climate talks in Copenhagen.

John Key warns farmers they reject a response to climate change at their peril - endangering their reputations, future incomes and the economy.

John Key urged farmers to be less agitated about the ETS and tackling climate change in an address to Federated Farmers today.

Fonterra's shareholders have approved the first stage of the dairy giant's capital restructuring plan.

ANZ National Bank economist Kevin Wilson says the new Fonterra payout could return the sector to profitability and reduce stress levels.

Fonterra's increased milkfat payout will put an extra $110,000 into the bank account of the average dairy farmer.

Fonterra chief executive Andrew Ferrier said improving market conditions had been reflected in trading on Fonterra's globalDairyTrade online platform.

The higher Fonterra payout will be a major boost for regional economies.

Dairy juggernaut Fonterra has announced a payout increase to dairy farmers for the current season.

Fonterra is expected to announce an increase in its payout forecast to farmers early next week.