Fonterra Co-operative Group Ltd is seeking to raise up to NZ$525m (€334m) from a fund that will next month open the world’s largest dairy exporter to equity investors for the first time.

DAIRY farmers will keep an eye on short-term milk price caution expressed by giant Dutch co-op FrieslandCampina, but they will not be unduly worried by it, according to IFA dairy chairman Kevin Kiersey.

A Chinese court declared bankrupt the company at the centre of a scandal over tainted milk that was blamed for killing six children and making nearly 300,000 more ill.

New Zealand is threatening to go to the World Trade Organisation to challenge a European Union rule that restricts its butter imports, a senior official said today.