Fonterra’s $3.2b capital return to farmers set to boost rural incomes and NZ economy
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
MyMilk provides a pathway into the co-op, by allowing farmers to supply MyMilk for up to five years without buying shares. It’s great for farmers who aren’t currently Fonterra suppliers, but want to be a part of the New Zealand cooperative story.
“Fonterra’s been looking at ways to make it easier for farmers to join and grow in the co-op, ensuring our co-op is strong for generations to come,” says Farm Source group director, Richard Allen.
“One way has been through MyMilk, a Fonterra-backed company that’s helping young and new farmers establish a foothold in the industry and ultimately take a stake in Fonterra.
“After five successful years in the South Island, we’re extending MyMilk across the North Island to allow more farmers, especially young farmers, the chance to purchase their own farm and join the co-op. We’re also extending the initiative to help existing Fonterra farmers looking to grow through purchasing another Fonterra farm.”
For young Southland farmers Don and Jess Moore, MyMilk has opened up an opportunity once beyond their reach.
“We’ve always wanted to be Fonterra suppliers,” says Moore.
“It’s been awesome to have the opportunity that MyMilk gives us by providing a pathway through stepping from sharemilking to farm ownership. MyMilk is an opportunity to keep growing and stay with the co-op, and we’re delighted more farming families will be given that chance.”
First launched in 2014 in the South Island, MyMilk has quickly gained traction, with more than 145 dairy farmers involved over that time across Southland, Otago and Canterbury.
MyMilk offers farmers the ability to supply milk for up to five seasons without a requirement to purchase shares in Fonterra.
MyMilk farmers are required to meet the same supply terms and conditions as Fonterra shareholders with regards to milk quality, safety and sustainability, and have access to many of the tools and services the co-operative offers.
“We know farmers have choices when they decide who they supply, and we want Fonterra to be the best choice with a strong sustainable Farmgate Milk Price.”
MyMilk will be available in the North Island for supply starting from June 1,2020. Eligibility conditions apply and MyMilk volumes are limited to 5% of Fonterra’s total milk collections.
