Fears that NZ milk products could contain bacterium that may cause botulism is big news in China, with the story featuring prominently in major newspapers.

Russia has made one of the most extreme responses to Fonterra's contamination scare so far, banning all goods made by the NZ dairy giant, according to media reports.

Authorities have recalled up to 1000 tonnes of dairy products across NZ and seven others, after Fonterra announced tests had found a bacterium that could cause botulism.

The potential contamination of Fonterra products with botulism occurred as a result of a dirty pipe at the company's Hautapu plant, it says.

Fonterra has lifted its forecast milk payout to farmers by 50 cents in the 2014 season.

What happens to NZ if China's mothers decide breast is best?

Fonterra has confirmed about 300 jobs from its head office in Auckland would go after a review of its support services, saving the company $65 million a year.

Fonterra chief Theo Spierings wants Government buy-in on a national strategy, reports Fran O'Sullivan.

Fonterra remains confident about its push into China's branded infant formula market, despite controversy in the Chinese media this year over New Zealand-made baby milk.

New Zealand's dairy sector debt nearly tripled over the past decade to $30.5 billion last year and some farmers will have difficulty servicing their loans in the year ahead.

NZ's reputation for high quality infant formula is being risked by inexperienced companies looking to cash in on Chinese demand, says a high-powered industry group.

Economists still expect a "bumper" season for New Zealand dairy , despite the first online auction for 2013/14 starting on a soft note.

It remains an area crying out for regulatory oversight in case missteps by smaller players screw the market for our champions, writes Fran O'Sullivan.

China's Government says it will step up monitoring of foreign infant formula products and "nurture" Chinese-made baby milk brands.