However, even the Reserve Bank's best case scenario sees farm prices fall by 20pc, while the worst case scenario would see a fall in land prices of 40pc.

Fonterra has confirmed the closure of its cheese plant in Kaikoura next month.

World dairy prices went against market expectations and fell 2.9 per cent decline at the latest GlobalDairyTrade auction.

NZ farmers may be in for a more prolonged slump in dairy prices after the EU announced plans to double the amount of skim milk powder it is prepared to buy.

COMMENT: Next Wednesday will be another major milestone in the NZ dairy industry. Dairy giant Fonterra will unveil its latest results.

Futures market pricing suggests tomorrow morning's GlobalDairyTrade auction will be flat to slightly better.

Federated Farmers and Dairy NZ have been holding around the country aimed at helping farmers, particularly sharemilkers, through the downturn.

COMMENT: Key says that around 10 per cent of dairy farmers could be forced off their land. I think Key's numbers are on the low side, writes Larry Williams.

Bill English has ruled out a bailout for struggling dairy farmers after Andrew Little said the Govt should consider emergency relief similar to droughts.

COMMENT: How about you borrow $30 billion to invest in something that produces a commodity that swings in price by more than 50% over a 2 year cycle?

Fonterra has scored an own goal in extending payment terms for suppliers because some frustrated companies are secretly hiking their prices.

Bank analyst has confidence in the sector's ability to adapt but says that some of those ill-prepared for the downturn will go to the wall.

Northland farm supplier Grant Whyte says the drop in dairy prices has been impossible to miss.

Fonterra said a member of its management team, Maury Leyland, has resigned for personal reasons, effective from March 31.

WATCH: On the latest extra episode of The Economy Hub, guest panelists Brian Gaynor and Fran O'Sullivan discuss Fonterra.

It is incomprehensible Fonterra's board could have persistently got it so wrong.

Sharemilkers and young people are leaving the industry as pay opportunities worsen.

Fonterra says it remains financially sound, despite high debt levels.

The kiwi dollar has dropped this morning after Fonterra cut its farmer payout for the second time this year.

Plans for former forestry land near Wairakei into 39 dairy farms have been scaled back.

The NZX reporting season clearly demonstrates that the domestic corporate sector is in good shape, writes Brian Gaynor.

Amid hard times in the dairy industry, one company has found a winning formula. What's the secret and can it last?

Global diary giant Fonterra is moving into what could be the smartest new building in Auckland, but as farmers slash costs the move has been criticised as unjustifiable.

Embattled dairy farmers were offered a glimmer of hope when world prices firmed for the first time this year.