Falling global dairy prices, dry conditions and high input costs are tightening the margins for Australia's dairy farmers and reducing national milk production.

Fonterra's earnings per share dividend forecast was lifted from 45c to 55c in January and will be updated in March in the half year results, says chairman John Wilson.

A member poll by Federated Farmers shows 11.1% of dairy farmers are now under pressure by banks over their mortgages. 

Subsidies handed to European farmers are partly responsible for the dip in global dairy prices, says Federated Farmers Dairy chairman Andrew Hoggard.

The export market is worth over $1.5 billion to New Zealand winegrowers.

An award winning rotary milking technology is helping a New Zealand company make inroads into overseas markets.

Four Fonterra farmers will travel to Sri Lanka this year as part of a new farmer volunteer scheme to work with their Sri Lankan counterparts.

Federated Farmers is calling for the Government to apply diplomatic pressure with European countries wanting to move backwards towards more regulation.

Expect the volatility in the international dairy market to be around for some time.

More developments in dairy processing operations, this time in Northland, are yet another nail in what must not be allowed to become Fonterra's coffin.