Fonterra CEO Expects Some Dairy Farmers to Enjoy Capital Return

New Zealand dairy farmers are likely to respond cautiously when they receive a substantial capital return next year, but some may want to enjoy part of the windfall, Fonterra Cooperative Group Chief Executive Officer Miles Hurrell said.

The company expects to distribute about NZ$3.2 billion ($1.8 billion) from proceeds of the sale of its consumer unit to Lactalis, assuming regulatory approvals are received. The cooperative’s farmer shareholders have already voted in favor of the deal.