The New Zealand economy grew at the fastest quarterly pace in three years in the tail-end of last year.

Prices of dairy products surged to the highest in two years in Fonterra's latest Global Dairy Trade auction as drought curtails production in the North Island.

We can expect to see the price rise steadily again over the coming months, writes Liam Dann. The commodity price of dairy has been tracking up since it hit a worrying low last winter.

The drought is a timely reminder of how much the New Zealand economy depends on rainfall, writes Brian Fallow.

Slaughterman Kent Sambells' workload was "hectic" last week as Waikato farmers called him in to destroy ailing cattle and take them away for processing into pet food.

Sheep and beef farmers may be in for a tough time with profits predicted to halve this season as the full impact of lower lamb prices and widespread drought starts to hit home.

Exports fell in the last three months of 2012 in real terms and the impact has been compounded by a decline in what we can buy, by way of imports, for a given quantity of exports.

The hot dry summer in the North Island is helping to push world dairy prices up - but the high kiwi dollar is taking the cream off the top.

In the fifth straight gain, prices in the latest world dairy auction rose 3.1 per cent overnight, takings prices to their highest level in five months.

Dry weather and the high kiwi dollar are causing "a deepening pessimism" to spread among sheep and beef farmers.

The face of New Zealand business changed over 2012 with a series of senior appointments made to some of the country's top jobs.

World dairy prices have risen in the last online auction of the year.

Fonterra's Trading Among Farmers (TAF) share trading scheme received its final, albeit retrospective, seal of approval at the annual meeting yesterday.

Food prices fell 0.8 per cent last month, with vegetables leading the charge. Food prices have now fallen 0.6 per cent over the past year.

Fonterra has revised its forecast payout range for the 2012/13 season to $5.90-$6 per kg of milksolids, up 25c per kg compared with the previous forecast.

Prices of dairy products fell in Fonterra's latest GlobalDairyTrade auction - the first decline in four sales.

Fonterra is hunting for new world headquarters.

The terms of trade fell for the fifth straight quarter in September, to be nearly 10 per cent off the peak in mid-2011.

Units in the new Fonterra Shareholders Fund have debuted at $6.66 per unit - a $1.16 premium to their $5.50 issue price.