A series of recommendations have been made to overhaul the dairy sector after a system investigation sparked by the botulism scare.

The Reserve Bank has warned defaults on dairy loans will be likely as cash-flow shortage estimated at $1/kgMS.

Fonterra has maintained milk price at $4.60 per kilo, but scrapped a farmer support scheme.

Pressure is mounting on Fonterra to cut its farmgate milk price forecast at this week's board meeting, but it's looking like a close call.

Given the recent scrutiny applied to Fonterra's board size, Staples Rodway Director Tracy Hickman considers the optimal board - in theory and in practice.

Animal welfare group SAFE placed a graphic advertisement to shame NZ's dairy industry in the Guardian newspaper.

'Is our dairy industry built on cruelty?" That was the question posed by TVNZ's Sunday programme which broadcast evidence covertly filmed by FarmWatch and Safe activists.

The New Zealand dollar was largely unchanged heading into the week's close as the Thanksgiving holiday in the US sapped trading activity.

The Fonterra Shareholders' Fund meeting heard the payout to farmers would be $390 million.

Fonterra's board and top management faced a tetchy reception at the annual meeting from shareholders looking at two straight years of low milk prices.

Fonterra has affirmed its guidance for the 2016 milk payout to farmers, although chairman John Wilson said it was dependent on next year's global dairy prices.

Fonterra chairman, who had retired by rotation from the co-operative's board, has retained his seat after a shareholder election

International dairy prices are at a "particularly bad" part of the cycle, but are expected to improve substantially in the first half of next year.

Dissidents want to trim the dairy giant's board - is it just a bid to lift performance, or a sign of deeper political tensions?

There's some good news from the dairy sector today, with Fonterra saying its financial performance is improving.

Consumer and food service came in at $408 million, up 216 per cent on the previous year's.

Bank of New Zealand cut its forecast for Fonterra Cooperative Group's payout to farmers this season amid continued weakness in dairy prices.

Fonterra boss Theo Spierings wasn't mincing his words this week when asked about rival Synlait Milk's moves to sell cut-price infant formula in China.

Top economist says "racist attitudes" towards Chinese immigration and investment could damage a relationship with China that promises to deliver "big waves".

Fonterra chief executive Theo Spierings says losing Chinese market share to European dairy competitors is a concern for New Zealand.

Any chance of an upgrade in Fonterra's farmer payout became more remote today after a big drop in world dairy prices.

Fonterra's Sri Lanka business has fully recovered after a 2013 food safety scare sparked public protests and forced the temporary closure of its operations there.

Fonterra said it had sold its 9 per cent stake in Australia's Bega Cheese, which it has held since 2013, for A$74 million.

The price for New Zealand's key dairy export, whole milk powder, may drop about 5 per cent at this week's GlobalDairyTrade auction amid lacklustre demand.

China's decision to allow all married couples to have two children will be supportive for the New Zealand dairy industry, but only "at the margin", ANZ Bank said in a commentary.

Fonterra said its milk production hit a seasonal high of 86.9 million litres on October 22 - down 3 per cent from last season's peak.