Chairman John Wilson said Fonterra is well placed to help its farmers because of the co-operative’s underlying strength.
“Being able to help our farmers is all about standing together as a co-operative and using our collective strength to get through these tough times,” Wilson said. “We have had a lot of interest from farmers who appreciate what the co-operative is trying to do for them to assist them with their farming businesses in a tough financial climate, and we are anticipating a large number of applications.”
Farmer shareholders can apply for an interest-free loan of 50c/kg of share-backed milksolids produced from June 1 to December 31, 2015. The loan will be interest-free until May 31, 2017, after which Fonterra may charge interest.
Farmers can repay all or part of the loan at any time and no security is required over their shares or any other assets. The loan will be repayable directly from milk payments, and automatic repayments will occur when Total Advance Rate Payments exceed $6.00.
Applications open today and close at 5pm on September 25, 2015. Farmers can apply online (the preferred option) at nzfarmsource.co.nz, or by email, fax or post.
Fonterra Co-operative Support for the first half of the season (June-December) will be funded by one-off savings generated by changes the business is making, such as improving working capital.
