The Ministry of Primary Industries has reassured overseas consumers that NZ milk is safe after claims it could be contaminated with radioactive chemicals.

A Taupo dairy company's guilty plea of failing to provide sufficient food for hundreds of cows sends a "strong deterrent message'', Federated Farmers says.

Spurred by tourism and the Crafar sale, Chinese investors are eyeing NZ assets.

Prices have fallen more than 7 per cent in the latest global dairy auction held overnight. It comes after a slight dip in prices two weeks ago.

Chinese billionaire Jiang Zhaobai, who now owns the Crafar dairy farming empire, is back in New Zealand forging a relationship with Maori.

Shares in the Fonterra Shareholders Fund rallied to their highest ever point today after the co-operative announced that it plans to cut 300 jobs.

Light-proof bottles claimed as a world first by Fonterra have been used by dairy companies overseas for more than a decade. But Fonterra has defended the claim.

A light-proof milk bottle described as a world innovation is being criticised by recyclers who say the complex packaging has a number of drawbacks.

An industry group is continuing to defend itself against accusations that it damaged this country's lucrative reputation for safe dairy products during a visit to a trade show in China this month.

Arrests of infant formula smugglers have surpassed those of heroin and other drug runners at Hong Kong's border since it introduced new laws restricting how much baby milk - much of which is made in New Zealand - can be carried into mainland China.

Primary industries generate over 70 per cent of New Zealand's merchandise exports.

A stoush has erupted in the lucrative infant formula export industry after Chinese media outlets published articles about a newly formed export association.

Rain has fallen in most of the nation's dairying areas over the last week or so, but Fonterra chairman John Wilson said it would take six weeks to determine whether the drought that hit most of the country had caused any lasting damage.

International dairy product prices may be close to their peak after an explosive run over the last 12 months, say economists.

Prices of dairy products recorded their smallest gain this year, edging up to a new record.

The net cost to the economy of the drought could be near to zero thanks to gains in world dairy prices, say Westpac economists.

Fonterra is shaking up its organics business to refocus supply in the central and lower North Island, leaving Northland organic farmers out in the cold.

Eric Watson discusses the widely held view that growth in exports is the path to economic prosperity.

Supermarkets around the world are selling Anchor milk and Fernleaf butter that is not produced on New Zealand farms.

Fonterra's not-so-little brother, Westland Milk, says it's sticking with its co-operative model.