The free trade deal with Malaysia is being seen as very positive, especially for Fonterra.

New Zealand exports roughly a billion dollars worth of goods to Malaysia each year. The Asian country is New Zealand's eighth largest market.

Business correspondent Roger Kerr says Fonterra's sales to South East Asia and the Middle East are expected to rise by 20 percent a year, but he says to maximise the benefits of the Free Trade Agreement, Fonterra still has some work to do.

"If they want to take advantage of the opportunities that for instance, the Malaysian market offers, they're going to need to do something with their downstream business to raise the external capital. That is certainly a challenge for Fonterra going forward."

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Finance Minister Bill English sympathises with farmers who are calling for the Official Cash Rate to be cut again, but believes another reduction might not be the answer to bringing down the soaring New Zealand dollar.

Farmers want some heat taken out of the high New Zealand dollar and believe a reduction of half a percent would do it.

But Mr English warns that a cut might not work, as the dollar is mainly being driven by the faltering US economy.

He says lowering interest rates risks firing up the housing market again.

The acting Prime Minister says the high New Zealand dollar is another head wind for our economic recovery.

"Generally at this stage of a recession, the dollar's pretty low and six months ago, it was back under 60 US cents. Now, that would be ideal for us because it would help us rebalance more quickly towards exporting, investing and saving and away from borrowing and consumption."

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The month-long lockout of workers at Open Country Cheese in Waikato is over, with staff gaining the job security they were seeking under the collective agreement.

Dairy Workers Union national secretary James Ritchie says the company's restructuring saw a reduced number of jobs available, but a confidential settlement was reached for workers whose jobs disappeared.