Fonterra wants changes to regulations which force it to supply large processors with raw milk and which requires it to accept all milk from new suppliers.

Fonterra's new $235 million dryer at its Pahiatua site in Manawatu has processed its first milk.

The low payout may starting to affect farm sales in the dairy sector.

MetService is warning farmers to expect a cold spring or, as meteorologist Georgina Griffiths says, a spring on steroids.

Fonterra is being “commercially rational” by reducing the volumes sold on the Global Dairy Trade (GDT) auction, says Fonterra managing director global ingredients, Kelvin Wickham.

It's not in anyone’s interest to see customers fail, says Westpac’s head of agribusiness, Mark Steed. 

DairyNZ's general manager of extension, Andrew Reid, says dairy farmers are looking closely at their feeding systems in the light of the low payout. 

Smart pasture management can give the average dairy farmer an extra $40,000 of feed, according DairyNZ’s team leader for productivity, Rob Brazendale.

Labour spokesman on primary industries, Damien O’Connor says while the dairy developments at Taupo are impressive it’s important the Crown is not exposed to major debt such as that of Solid Energy.

Key signs of lowering production were enough to “wake the market up” out of its downward spiral at last week’s GlobalDairyTrade auction, says ASB rural economist Nathan Penny.