Low world dairy prices aren't stopping the NZ industry - production was up 13pc last month from July last year.

Whole milk powder prices, which are the key to determining Fonterra's farmgate milk price, rose by 12.1 per cent to an average US$2078 a tonne.

Fonterra's move to cut the amount it sells on its global dairy auction appears to have worked.

Fonterra chairman John Wilson responds to criticism last week that Fonterra has been a failure.

Created in 2001, Fonterra was heralded as an "icon of economic transformation", a "breakthrough idea", "helping NZ catch the knowledge wave".

Investment bank says there is a 25 to 30 per cent risk of New Zealand's economy going into recession in the next 12 months.

Wholemilk powder prices rallied by 19.1 per cent at this morning's GlobalDairyTrade auction.

Fonterra's market share in the South Island has slipped beneath the 80 per cent threshold specified in its enabling legislation, Minister for Primary Industries Nathan Guy says.

Fonterra's market share in the South Island has slipped beneath 80 per cent ending pro-competition provisions.

"There's nothing more depressing than knowing when those big tankers come on to your farm you are paying Fonterra to take your milk away."

Finance Minister Bill English remains confident about the prospects for economic growth, despite recent dairy woes.

Fonterra says it is significantly reducing the amount of product it puts up for sale on the GlobalDairyTrade auction platform over the next 12 months.

Fonterra has been put on credit watch with negative implication by ratings agency Standard and Poor's.

Finance Minister Bill English said today the Government would not be offering special financial support to dairy farmers in trouble because of low prices.

The number of mortgagee sales has jumped nationwide in the past quarter as worsening economic conditions and lower dairy payouts hit parts of provincial New Zealand.

Milk powder prices will need to improve substantially before Fonterra's revised farmgate milk price of $3.85 per kg of milk solids can become a reality, say analysts.

Fonterra lacks people who understand the impact of new and disruptive technologies, writes Keith Woodford.

Fonterra chief executive Theo Spierings says farmers are "very strong and resilient" and he is confident low dairy prices will bounce back amidst market volatility.

Andrew Little says another bad season for dairy farmers could cause New Zealanders to lose some of the country's best agricultural land to offshore buyers.

Much of the available loans it will offer will likely pass straight to banks to meet debt-servicing costs, writes Fran O'Sullivan.

Dairy giant yesterday revealed its latest payout forecast, dealing a blow to individual farmers, and the wider economy.

$4.55 swing in forecast milk price paid to farmers over two seasons shows there's something wrong with NZ's dairy model, says Landcorp Farming CEO Steve Carden.

Paparimu dairy farmer Craig Maxwell says farmers are worried about the survival of their farms.

The country's biggest exporter has lowered its price from a previous forecast of $5.25 following sharp falls in whole milk powder prices.

A drop in the price of milk on supermarket shelves could be in store for New Zealanders - but not anytime soon, says supermarket chain Countdown.

Fonterra is expected to announce a sharp reduction in its farmgate milk price today.

Dairy farm prices are likely to fall this spring as the sector faces the prospect of two successive years of sub-par payouts, says the ANZ Bank

DairyNZ says New Zealand milk production is expected to fall by 2 or 3 per cent this season as farmers focus on improving the efficiency of their farming systems.

Whole milk powder prices have dropped to their lowest level since 2008, putting more downward pressure on Fonterra's farmgate milk price forecast and reinforcing the market view that the Reserve Bank will cut interest rates twice this year to partly compe