Sharemilking Arrangements: 2011/2012 season

March 25 2011

Many dairy farmers are at this time of the year planning their sharemilking and employment arrangements for the upcoming 2011/2012 season. This is an important time to be sitting down with existing or new sharemilkers/farm owners to reach agreement on the final terms of arrangements.

Federated Farmers has recently released its updated Herd Owning Sharemilking Agreement (also known as the 50:50 Sharemilking Agreement) which includes updated clauses to deal with payments to sharemilkers for milk supplied. Amendments have been made to accommodate the manner in which Fonterra now pays its shareholders.

The Federated Farmers Variable Order Sharemilking Agreement has also been updated, however this is currently still under review. It is anticipated this updated agreement will be available from Federated Farmers in late March 2011.

We recommend you speak with us regarding your contractual arrangements for next season if your existing sharemilking arrangements are continuing or changing.

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