Fonterra Australia have agreed to settle class action proceedings filed in the Victorian Supreme Court on behalf of farmers affected by the 2016 milk price step down. The case was filed in 2020 with hearings taking place since that time before mediation took place in October.
The settlement of $25m includes interest and all costs. In a brief statement, Fonterra said the settlement, if approved by the court, will not impact on the company’s financial position as it has already been provided for in prior year’s financial statements. The settlement was made without any admission of liability.