Prime Minister John Key says Fonterra is moving up the value added chain as best it can, but needs to do more.

Fonterra farmers have been told their longevity in business will be determined by their performance during their worst years.

EU milk production growth is slowing, says ASB's rural economist Nathan Penny.

The GlobalDairyTrade price index was up 1.4% over night, with whole milk powder up 5.5%.

A drop in fresh milk prices by 14% contributed to food prices falling by 1.3% in the year to December 2015, Statistics New Zealand says.

It's been another bad morning for the dairy industry.

On-shelf dairy prices for consumers in China are too high so demand is not growing, says Fonterra's chief executive Theo Spierings.

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 board aspirant Ashley Waugh is questioning why the co-op's payout is never substantially ahead of other milk processors.

Global Dairy Trade prices are coming back relatively quickly and Fonterra expects whole milk powder prices to keep climbing over the next six months, says Fonterra chairman John Wilson.