Fonterra farmers can now apply for Fonterra Co-operative Support, a loan to help them deal with the current challenging conditions.
According to the dairy company, these challenging conditions include the low forecast Farmgate Milk Price for next season, which is currently set at $3.85 kgMS.
This is the first time the Co-op has leveraged its strength to provide support to its farmers at such a significant level, a Fonterra spokesperson noted.
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,” said Mr. Wilson.
Farmer shareholders can apply for an interest-free loan of 50 cents for every kilogram of share-backed milk solids produced from 1 June to 31 December 2015. The loan will be interest-free until 31 May 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 on 25 September 2015. Farmers can apply online (the preferred option) at nzfarmsource.co.nz, or by email, fax or post.