ANZ National Bank economist Kevin Wilson says the new Fonterra payout could return the sector to profitability and reduce stress levels.

Fonterra's increased milkfat payout will put an extra $110,000 into the bank account of the average dairy farmer.

Fonterra chief executive Andrew Ferrier said improving market conditions had been reflected in trading on Fonterra's globalDairyTrade online platform.

The higher Fonterra payout will be a major boost for regional economies.

Dairy juggernaut Fonterra has announced a payout increase to dairy farmers for the current season.

Fonterra is expected to announce an increase in its payout forecast to farmers early next week.

The price of milk powder climbing to a 13-month high in Fonterra's latest online auction.

Rising dairy prices continue to underpin gains in the ANZ Commodity Price Index, which has recorded its seventh straight monthly gain last month.

Fonterra is being asked to adopt a formal profits distribution policy so farmers being asked to invest cash know what payoff they are likely to get.

A Fonterra executive paid $3.7m when he left the dairy giant this year, was said to have been the fall guy for the disastrous investment in China's San Lu milk company.

A departing Fonterra executive has pipped CEO Andrew Ferrier's take-home salary, receiving total payments of up to $3.72 million.

Fonterra's highest-paid employee - likely to be chief executive Andrew Ferrier - appears to have taken a pay cut of up to $360,000.

John Key says the signing of a free trade deal with Malaysia is another vital move towards a "step change" for the NZ economy.

Fonterra chairman Sir Henry van der Heyden says the dairy co-operative will step up investment within Asia because of the Malaysian free trade deal.

Fonterra's directors said today a vote on changes to the co-operative's capital structure will be held at the annual meeting on November 18.

New Zealand's largest exporter, Fonterra, says it will receive no protection under planned changes to the emissions trading scheme.

Fonterra farmers keen to get an early start on share trading will have to wait a while yet.

Greenpeace protesters have been arrested in New Plymouth this morning, after vandalising a ship.

Winston Peters is back with all guns blazing today in a speech slamming immigration, foreign ownership and the Government.