[30 May/Farmers Weekly]

More than 2000 Fonterra farmers have been offered a four-month extension to comply with their 2019-20 shareholding requirements. The reasons for this extension include significant financial pressure on farmer’s balance sheets due to Fonterra’s lower share value of around $4.20 and the impact of stringent lending criteria for farmers by banks. Farmers in their fourth, fifth and sixth years of a six-year share-up contract have also been offered a one-year extension. Managing Director, Mike Cronin reports that the later date will have minimal impact on share trading because the number of shares farmers are required to buy remains the same.