FAQ Categories:
General
What is Fonterra?
Fonterra is one of the top six dairy companies in the world by turnover and the leading exporter of dairy products and responsible for more than a third of international dairy trade. We are owned by over 11,000 New Zealand dairy farmers who supply us with more than 14 billion litres of milk each year. Our global supply chain stretches from farms all over New Zealand to customers and consumers in more than 140 countries.
Who owns Fonterra?
Fonterra is a Co-operative dairy company owned by more than 11,000 New Zealand dairy farmers.
What is a Co-Operative?
This is a business that is owned and controlled by the people who use its services. Co-operatives use a special form of governance. Each member has the opportunity to vote for leaders and to vote on important issues. Co-op members also share equally in the earnings of the business and any services it provides.
When was Fonterra formed?
Fonterra was formed in October 2001 after, 84 per cent of the farmers involved voted to accept the merger of the New Zealand Dairy Board, New Zealand Dairy Group and Kiwi Co-operative Dairies in July that year.
Financial
How do I become a shareholder in Fonterra?
You have to supply milk in New Zealand in order to be a Fonterra Shareholder. Fonterra’s shareholders hold one share for each kilogram of milk solids they supply to the co-operative, with the exception of a limited number of shareholders supplying milk under contract arrangements where a minimum shareholding of 1,000 shares is required and shareholders who in a prior season have experienced a one-off temporary increase in production and have elected not to buy shares to cover that increase. The quantity of unshared supply is limited, and contract supply and unshared supply attract lower milk payments than similar milk backed by shares.
What is Payout?
As a co-operative, Fonterra distributes virtually all its income to shareholders in the form of payout. This payout is paid in proportion to the supply of milksolids received from the shareholders.
