Fonterra is cutting back the amount of product it sells on its GlobalDairyTrade auction platform for the next 12 months.

Fonterra has confirmed it has put on hold a proposed coal mine at Mangatangi while it assesses its energy options.

Nominations have opened for seats on Fonterra's board, with chairman John Wilson and two other directors up for re-election.

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.

Signs look good for Fonterra that dairy prices will bounce in tomorrow's GlobalDairyTrade (GDT) 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 forecast of a 2 per cent fall in milk production this season is looking more conservative by the day as farmers cull stock.

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.

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

Fonterra effectively overpaid farmers last year, sapping funds available to pay farmers at the end of the season.

Dairy farmer can't believe there are people in the industry being ''paid millions'' who have led farmers "up the garden path a bit".

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.

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

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

$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.

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

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

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.