Fonterra has raised its forecast payout to farmers to $8.65 per kilogram of milk solids as global demand for milk powders remains strong.

Dairy product prices recorded their biggest drop since early November in the latest global auction, with the volume sold falling to an eight-month low.

Fonterra is calling for improved lab-testing, saying the Environmental Science & Research laboratory lacked the capacity to identify an E.coli bacterium in cream.

Dairy giant Fonterra is calling for government laboratories to be better equipped to identify bugs in food, after finding E.coli bacteria in its fresh cream.

Icecream makers are worried by revelations that the Auckland Council is negotiating a 10-year deal to give Tip Top selling rights at public pools, parks, the waterfront and events.

French dairy giant Danone's Nutricia unit recalled just $25.7 million of infant formula when it was caught up in Fonterra's false food alarm last year.

Dairy giant Fonterra has confirmed it is close to reaching a commercial deal with Auckland Council.

Fonterra has raised 1.25 billion renminbi in its second Chinese currency denominated bond, which it will use to repay debt and expand operations in China.

A waterfront dispute has broken out between two of New Zealand's biggest ports, arguing about who is the best.

Fonterra is buying the naming rights for Shed 10 on Auckland's Queens Wharf - and will use its Anchor brand, the Herald understands.

While the timing of this is far from ideal given last year's events, this voluntary recall came from Fonterra's own testing, writes Willy Leferink.

A six-month-old baby girl was left 'screaming in pain' after eating a pudding topped with cream that was potentially infected with E.coli bacteria.

News that Fonterra has recalled some batches of fresh cream has people worried that illness they have suffered is due to consuming the contaminated product.

Customers are being asked to return nearly 9000 bottles of fresh cream, after three positive tests for E.coli at Fonterra's Takanini plant.

Herald business editor Liam Dann says the new Fonterra recall needs to be kept in perspective - but the world is watching the dairy giant much more closely now.

French food giant Danone's legal action against Fonterra will cause uncertainty for investors and is more bad press for the dairy co-operative and NZ, says a commentator.

Fonterra's top executives will have plenty to think about early next year when they devise the co-operative's next three-year business plan.

Strengthening systems to track dairy products through ever-lengthening domestic and international supply chains will be one of the key areas of work following the latest report on the Fonterra botulism scare.

A sudden and unexpected divergence in the price of milk powder relative to other dairy products has forced Fonterra to take a big knife to its dividend and earnings forecasts for the 2013/14 year.

Federated Farmers says a report on Fonterra's botulism scare has highlighted the need for a stronger food safety regime.

Theo Spierings, the chief executive of Fonterra, said: "The elephant! So you heard about the elephant."