This episode featured as part of the Agribusiness segment in partnership with BNZ.

Dr Nic Lees, senior lecturer in the Department of Agribusiness at Lincoln University, says Fonterra’s capital return to dairy farmers reflects the co-operative’s view that farmers can generate a higher return on that money than its consumer business.

“This isn’t really treated as income. It’s a capital return to dairy farmers,” he says.

Much of it is likely to go towards reducing debt and on-farm infrastructure.

He says Richard Allen’s appointment as chief executive signals the board’s move from strategy to execution.

This episode featured as part of the Agribusiness segment in partnership with BNZ.

This podcast is solely for information purposes. It’s not financial or other professional advice. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this podcast.

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.