Ryan Moore rides Protectionist to win the Emirates Melbourne Cup on Melbourne Cup Day at Flemington Racecourse. Photo / Getty Images
Protectionist has won the 2014 Melbourne Cup.
Red Cadeaux came in second, with Auckland Cup winner Who Shot Thebarman placing third.
But favourite Admire Rakti has died after finishing last in the race. It won the Caulfield Cup in brilliant style last month, and today raced near the lead for most of the 3200-metre journey.
As it rounded the final bend the horse was clearly under pressure and dropped back through the field sharply.
He finished 25 lengths behind the second-last horse.
Chief steward Terry Baily said the seven-year-old collapsed and died when he returned to the tie-up stalls after the race.
Racing Victoria vets will conduct an autopsy.
"It's a shame. We had such a nice, clean-run Melbourne Cup," Bailey said.
Protectionist delivered the first Melbourne Cup win for Germany.
He becomes the fifth northern hemisphere-trained horse to win the race since Vintage Crop scored in 1993.
Protectionist is trained by Andreas Wohler and was ridden by Ryan Moore, the English jockey who won the Cox Plate on Irish galloper Adelaide.
"He's won very easy, that's a very good horse," Moore said.
"Obviously it's very special."
Starting with Japanese stayer Admire Rakti's win in the Caulfield Cup, the Melbourne spring carnival has belonged to the internationals.
But Protectionist's win has ensured there is cause for Australian celebration after the nation's greatest horse race.
The five-year-old is part-owned by Australian Bloodstock, the syndicator which raced the 2011 Melbourne Cup placegetter Lucas Cranach.
Red Cadeaux, lining up in his fourth Melbourne Cup, became the first horse to run second three times after also finishing runner-up in 2011 and 2013.
The nine-year-old was being hailed the winner until Protectionist emerged between horses at the 200m mark.
Auckland Cup winner Who Shot Thebarman was the first Australian-trained horse to finish, making ground along the inside to take the minor placing ahead of Signoff.
Favourite Admire Rakti, aiming to complete the Caulfield Cup-Melbourne Cup double, raced in second place but was beaten at turn and dropped right out.
Photo gallery: Fashion on the field
Image 1 of 27: Ronn Moss. Photo / Getty
Kiwi punters spent a record-breaking $10.3 million on this year's Melbourne Cup race.
"It looks like our turnover went nuts in the last half hour," TAB spokesman Mark Stafford said.
"Last year we did $9.4 million on the race. It looks like we have done $10.3 million, which is a record in total turnover for the race.
"It just went ballistic. That last half hour went bang."
Mr Stafford said that, as with every other year, more bets were placed in the hour leading up to the race.
"You definitely see that, in the last half hour, it ramps up more than usual."
He said Protectionist, this year's winner, was the third most backed horse in the race.
"There was no catching that winner -- it won quite easily and just accelerated at the end, nothing could go with it."
The two most backed horses were New Zealand's Who Shot Thebarman, which came in third, and Japan's Admire Rakti, which came in last, and later collapsed and died after the race.
"Who Shot Thebarman did a great job, he was against the best in Australia and the northern hemisphere -- all round he finished third.
"It was a great honest race by Who Shot Thebarman."
The biggest bet made on this year's winner, Protectionist, was $5000 to win.
At $7.50 to win, the punter got a return of $37,500, Mr Stafford said. The bet was made online.
"There are plenty of winners out there that have had a bet today."
New Zealand's Melbourne Cup celebrations have been in full swing for much of the day - with punters around the country crowding the nation's racecourses, bars and restaurants.
In Auckland, Ellerslie Racecourse attracted its biggest crowd in five years for a Melbourne Cup day, with 5000 racegoers expected throughout the day.
Takapuna mother-of-three Claire Hahn won best dressed woman in the Sofitel Melbourne Cup Award in a stylish top and mid-length patterned skirt combo.
Mark Wallbank, who owns several Auckland restaurants including Ponsonby's Blue Breeze Inn and Moo Chow Chow, took out the men's competition in an outfit "thrown together" this morning.
Mrs Hahn, who is a milliner designer, stuck to neutral colours for her outfit, completing the look with strappy heels, a beige clutch and hat she made herself.
Mr Wallbank said he tried a few outfit combinations on this morning before settling on his winning ensemble.
The Melbourne Cup enthusiast, who spends every other race day at Ellerslie, wore a bow tie for the first time this year. He also threw in a cane and hat.
The Ascot Ave venue was also hosting 10 thoroughbred races of its own.
Chief executive Cameron George said the day had started well, and racing fans were enjoying better weather than forecast.
"Everything is great and the crowd is building, we will hit the 5,000 mark," he said. "It's the best it's been for the last five years.
"People want to be close to the action where you can see horses...so I am sure that's a draw card."
* A $5000 bet on winner Protectionist, which was paying $7.50, won $37,500.
* A $1000 bet on winner Protectionist, placed in October when the horse was paying $51, won $51,000.
* A $10,000 bet on Araldo to finish in the first 10, paying $2.30, won $23,000.
* A $5000 bet on an international trainer to win the race, paying $1.95, won $5000.
* There were approximately 650,000 bets placed on the Melbourne Cup.
* TAB turnover for the 154th Melbourne Cup race was just over $10 million, surpassing last year's turnover by approximately $1 million.
Racing experts pulled their picks before the Melbourne Cup race yesterday, the Herald sees how they stacked up:
Mike Dillon
Herald racing reporter
1: Admire Rakti
2: Fawkner
3: Protectionist
4: My Ambivalent
Cameron George
Ellerslie Raceway chief executive
1. Admire Rakti
2. Signoff
Brendan Popplewell
TAB Trackside presenter
1. Admire Rakti
2. Signoff
3. Who Shot Thebarman
4. Royal Diamond
Mark Stafford
NZ Racing Board media manager/racing expert
1. Admire Rakti
2. Signoff
3. Who Shot Thebarman
Actual results
1. Protectionist
2. Red Cadeaux
3. Who Shot Thebarman