Are you fully shared up?
Great, did you know that under Flexible Shareholding you can hold up to 4x your milk supply in shares?
For more information on how to trade, click here (please note you may be asked for your Farm Source login details).
Or, if you’d rather keep things as they are, you don’t need to do anything. Either way, if you’re thinking about buying or selling shares, you should talk to your accountant, lawyer, financial advisor or other rural professional to discuss your options.
Do you have a ‘Share-Up Over Time’ contract?
Under Flexible Shareholding, the Share-Up Over Time (SUOT) terms are partially waived to your benefit, to reduce your minimum holding of 33% of your milk supply. Your maximum holding under Flexible Shareholding is 4x your milk supply. If you entered a new SUOT contract for the 2022/23 season, this automatically ends once Flexible Shareholding is implemented in March 2023. This means you then have up to six seasons to share up to your minimum holding of 33% of your milk supply. You are not bound to supply us for the full six seasons if you reach your minimum holding early.
Farmers who supply Fonterra (whether sharing up or fully shared up) are referred to as Supplying Shareholders under Flexible Shareholding. The other types of shareholders that are useful to know about are Associated Shareholders, Secondary Shareholders and Permitted Transferees.