Prices continued to improve at this morning’s GlobalDairyTrade auction, the GDT price index gaining 1 per cent since the last sale a fortnight ago.

Falling milk powder prices have hit consumers' economic confidence in the key dairy regions of Southland and the Waikato, says Westpac.

Dairy farmers were offered a respite from what has so far been a dismal season for prices after the GlobalDairyTrade index gained 3.6 per cent at the first auction for 2015.

The international dairy trade has started 2015 on a positive note at this morning's GlobalDairyTrade auction, up 3.6 per cent on last month's auction.

Fonterra's plan to allow non-members to supply it with milk has sparked fears that it could end up eroding the group's co-operative base.

A $6 billion drop in dairy farmers' incomes this season is a blow to the wider economy, no question, writes Brian Fallow. But it's not all bad.

Fonterra has moved to shore up its supply base by forming a subsidiary that can take in more milk without suppliers having to buy shares in the co-operative.

The medium to long term outlook for NZ dairy farmers remains sound, despite yesterday's payout cut, says rural lender Rabobank.

Fonterra said it had launched a separate milk sourcing subsidiary - mymilk - to grow its market share in the South Island.

Fonterra plans to cut costs and defer some capital expenditure so that an improved dividend can at least partially offset a likely $6b decline in income for the sector.

The industry group DairyNZ estimates that one quarter of dairy farmers will have difficulty paying their bills if Fonterra's reduced farmgate milk price comes to pass.

Fonterra has this morning cut its forecast farmgate milk price payout to its farmers, with its chairman admitted it'll put pressure on farm budgets.

Neither Fonterra nor the Ministry for Primary Industries emerged unscathed in the final report on the botulism scare that rocked the New Zealand dairy industry last year.

There is one salient comment in the report by Queens Counsel Miriam Dean into the WPC80 incident that ought to give Fonterra's directors and shareholders cause for concern: "A company that is....

Wholemilk powder prices continued to decline while other products showed signs of improvement at this morning’s GlobalDairyTrade auction.

ANZ's commodity price index fell for the ninth month in a row in November, as milk powder prices hit five-year lows.

Falling dairy prices have begun to undermine one of the foundations of the economic upswing, rising national income from the most favourable terms of trade.

Tomorrow will see the last GlobalDairyTrade auction before Fonterra releases its revised farmgate milk price forecast for 2014/15.

Fonterra says it had started a consultation process to gauge interest in a proposed equity partnership trust for its farmers.

Global dairy markets have plummeted but New Zealand beef prices have continued to hit record highs, while sheepmeat prices have stayed firm, Rabobank says.

Andrew Rolfe, Fletcher Construction project manager, said a 16m hole on the corner of Halsey St and Gaunt St in the Wynyard Quarter had now been completed.

Dairy farmers should be able to weather a low payout for the current season, thanks to last year's record milk price, but two poor seasons in a row would put the sector under financial stress,....

New Zealand tractor sales are expected to match record highs this year, thanks to high milk prices and good growing conditions.