Now to pay it back with interest

The co-op still has $370 million in loans outstanding.

Chairman John Wilson says farmers were told they would have to start paying back the loan once the payout exceeded $6/kgMS; interest will be charged from June 1. He says the co-op will tell them the rate in the coming weeks.

“We will use the strength of the co-op to ensure the interest rate is appropriate.”

Wilson believes the loans were a “good fill-up at the time” for cash-strapped farmers.

Meanwhile directors and management will hold 36 meetings with shareholders this week, to brief farmers on the co-op’s half-year results and the global dairy outlook.