The second biggest payout of Fonterra came out as good news for the farmers and also for the entire country. Meanwhile the chairman of the Bay of Plenty Federated Farmers, John Scrimgeour said the move would unlikely to lead to big spending of the company.

The farmers of the country will most probably use the money to pay off their previous debts and they are also expected to pay the costs of extra feed and fertilizer.

A dairy farmer Mr. Scrimgeour said some of the farmers would use the money in maintenance of their property and in capital spending. Fonterra has decided to make a payout of 6.70 dollars in this year up from 5.21 dollars in last year.

Experts say this increased payout would boost the confidence of the farmers and it would also bring benefit to the communities in the rural areas.

The outlook for the value added part of the business showed a great performance in the last 12 months. Another good thing is that the Fonterra has brought down its own debt by saving 134 million dollars in its net financial costs.