Fonterra says milk collection this season will be down 5% compared to last year.

NZ dairy farmers need to keep the focus on the cost of production, because New Zealand is the only system in the world that can live through the current volatility, says Fonterra chief executive Theo Spierings.

Fonterra has appointed Judith Swales to the new role of managing director for Oceania.

Fonterra chair John Wilson says there has been “a complete misunderstanding” over the pay increase for the co-op’s chief executive.

Fonterra chief executive, Theo Spierings, says improved second half results in the 2015 financial year were driven by a strong focus on cash and costs.

Fonterra is shedding another 227 jobs as part of an on-going business review.

Fonterra chairman John Wilson says from a Fonterra governance perspective and the way the cooperative manages its business, its balance sheet is strong.

Fonterra is losing control – control of correctly predicting the mood among commodity buyers and correctly predicting how dairy prices will fare.

Fonterra has announced a reduced farmgate milk price to $3.85/kgMS plus a 40-50 cent dividend per share for the 2015/16 season.

Fonterra staff could be facing another wave of job cuts next month.