To start supplying to Fonterra, please follow these key steps:

1. Learn more about becoming a Fonterra Farmer here. You will also find contact details for a local Business Development Manager (BDM) who can help you with joining the Co-operative.
2. With the support of your local BDM or Co-operative Services Area Manager, complete an Application to Supply form (either A01 or B01 depending on farm type and appropriate AML forms which they will provide.

Under the Terms of Supply, if a farmer wishes to cease supplying milk to Fonterra they are required to apply to Fonterra for permission, referred to as 'giving a cease notification'. This must be done during the Application Period which precedes the season during which supply will cease.

They will need to:

• Contact their Area Manager and make an application in writing to Fonterra (via an online form);
• Make that application no later than three months before the commencement of the season in which the cessation will occur (i.e. by 28/29 February); and
• Specify in the application the date they intend to cease supplying to Fonterra. 

If a farmer ceases supply without giving a proper cease notification, the Co-op will suffer loss and the supplier is liable to pay Fonterra liquidated damages calculated in accordance with the formula set out in the Terms of Supply. In addition, time constraints will apply in relation to when the farmer will be required to sell their shares.

A cease notification can be withdrawn up until 30th of May preceding the intended cease date.

Download a Cease Withdrawal Form

A cease withdrawal notification can also be completed online via the Farm Source website by the farmer under My Business, Contract Arrangements, Milking Arrangements.
 

Share Reduction Period

If a cease notification is accepted by Fonterra, the farmer will be given a Reduction Period during which they can sell their shares. This enables the shareholder to sell their shares over a period as specified in Fonterra’s Constitution. You can find more information on the cease reduction period for different shareholder types here.
 

Transferring shares after a farm has ceased supply

Under the new Flexible Shareholding capital structure, ceased suppliers have the option to transfer their shares. For more information on this option, please visit Flexible Shareholding.

Does the farm have an additional contract?

Fonterra offers optional contracts in addition to the standard supply (e.g. Winter Milk, Organics and Fixed Milk Price contracts). Depending on the contract, there may be implications to the farmer when ceasing supply and they may need to apply to terminate and or transfer the contract. It is important to check if the farm has a contract and if there are any implications. 

For farms on a MyMilk, Share Up Over Time or 6-Year Transition Period contract, please contact Fonterra to discuss requirements and potential implications. Under the new Flexible Shareholding capital structure, these contracts are no longer available, however existing contracts will be honoured.

Fonterra can provide the farmer with the required information needed to check the status of the farmers compliance for a farm sale. Please ask the farmer to contact the Farmer Support Team on 0800 65 65 68 for this information.

If a farmer has submitted a cease notification during the application period that is accepted by Fonterra but is not selling their shares to the purchaser of their farm, their shares can be sold after the cease date. There are multiple options and tools for selling and buying shares. Learn more.

Fonterra annually provides each farm a measurement statement that outlines their share measurements for the season. This is emailed or mailed early June of each season. Copies of the measurement statement can be found on the Farm Source website under Statements.

Fonterra has a selection of options and tools for farmers to help manage buying and selling Fonterra Co-operative Group Ltd Shares. Refer to Share Trading Options for more information.

If your client wants to transfer shares between farms or to another entity this can be done  online  or via an Off-Market Share Transfer form.

Please note: If the vendor's shares are subject to a Lender's Security Interest or lien, Computershare will not be able to process the transfer until the security is released. You will need to speak to the lender about releasing the security.

Fonterra may announce an interim and/or final Dividend. The entity recorded as the holder of a share on the applicable record date will receive the dividend. The Dividend Statements are viewable online on the afternoon of the date of payment and the statement is posted by Computershare at this time. Dividends are not shown on the monthly Fonterra Suppliers’ Statement. The dividend is paid by Computershare into the bank account they hold for the shareholder. 

On the Record Date a snapshot is taken of the share register to determine who is a shareholder and exactly how many shares they hold on that date. The registered shareholder on the Record Date is entitled to be paid the dividend. Shareholders need to purchase shares at least two business days before a Record Date to ensure the trade settles and the shares are in their name on the Record Date.

Computershare manages the Fonterra Share Register. If a shareholder changes address or bank account, they will need to advise Computershare as well as Fonterra.  Information can be updated online or by mail:

Computershare Investor Services Limited
Private Bag 92119, Auckland 1142, New Zealand
Phone: +64 9 488 8777
Fax: +64 9 488 8787
Email:  enquiry@computershare.co.nz