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.
The co-op still has $370 million in loans outstanding.
Chairman John Wilson says farmers were told they would have to start paying back the loan once the payout exceeded $6/kgMS; interest will be charged from June 1. He says the co-op will tell them the rate in the coming weeks.
“We will use the strength of the co-op to ensure the interest rate is appropriate.”
Wilson believes the loans were a “good fill-up at the time” for cash-strapped farmers.
Meanwhile directors and management will hold 36 meetings with shareholders this week, to brief farmers on the co-op’s half-year results and the global dairy outlook.
