Fonterra Cooperative Group is assessing the impact of a big drop in milk production this month on its contract book and future production plans.

Fonterra Co-operative Group has suspended a distribution agreement with China's Jiawai.

COMMENT: My lunch guest was the alleged fraudster at the heart of the expired milk products scam, Fran O'Sullivan writes.

Fonterra's NZX-traded units were unchanged despite news over the weekend that 19 people had been arrested in alleged milk powder scam.

Nineteen people have been arrested in China for allegedly repackaging expired Fonterra milk powder with a view to sell it.

.The suspects were allegedly managing a company, which was packaging expired products of Fonterra in China.

Australia, like New Zealand, is facing sharply lower milk production because of a wetter-than-normal spring.

Two big banks have upgraded their farmgate milk price forecasts after a modest gain in product prices at the latest GlobalDairyTrade auction.

International dairy prices improved slightly at this morning's Global Dairy Trade auction, gaining by 1.4 per cent since the last sale early this month.

Fonterra's strategy of shifting more milk, quicker, into the value-added side of the business is gaining momentum after getting off

The key change to the governance model will enable farmers to directly nominate their own choice for selection to the board.

The decline is the first in five auctions.

Tatua Co-op dairy payout drops to $6.30 a kg, but is still well ahead of its larger competitors like Fonterra.

COMMENT: It is still too early for Fonterra's top brass to perform a victory roll.

The new model allows farmers to directly nominate their choice for selection to the board.

Fonterra said its net profit shot 65 per cent higher to $834 million for the 2015/6 year.

The outlook for dairy farmers has turned positive after Fonterra raised its farm gate milk price for the second time in less than a month.

South Waikato mayor Neil Sinclair likens growing the economy of a rural region to deep sea fishing: "You have your line, your hooks

About 100 farmers in Otago and Southland were forced to dump milk over the weekend in the aftermath of the milk silo collapse at Fonterra's Edendale site.

Dairy farmers have endured one of their worst ever years, but Fonterra is set to report one of its best.

Fire service spokesman Steve Lee said an unspecified amount of milk had been spilt at the Edendale factory.

Emergency services are at the scene of incident involving a milk silo at Fonterra's Edendale plant.

There are eight important things to look out for in Fonterra's result.

Dairy farmers are facing an improved outlook but they remain cautious about where prices go from here.

The farmers ended up supplying Fonterra after it bought a failed Canterbury dairy business out of receivership.

World dairy prices put on their third significant gain in a row at the latest GlobalDairyTrade (GDT) auction overnight.

Signals are pointing to another mad rush for product at this week's GDT auction, according to ANZ rural economist Con Williams.

Signs look good for a further rise in global dairy prices - and maybe a return to profit.

There's a lot riding on Fonterra's financial results due out on September 22.