Fonterra suppliers angry at being made to wait 90 days for payment

A war of words has erupted between Fonterra and some of its suppliers.

Suppliers to New Zealand's biggest company say they've been asked to wait 90 days to be paid, but Fonterra's money man denies the claim.

Dave Strong operates Morrinsville Plumbing and Gas, which supply the dairy giant.

He said he was sent a letter requesting he wait up to 90 days for payment.

"Pretty crappy actually, I mean we've a long term relationship," he said.

However, what is confusing many suppliers is what Fonterra's chief financial officer Lukas Paravicini said on television this morning.

"We have not done 90 days, there's no such thing as 90 days term," he told the Paul Henry show.

"[The letter] says 61 days following the end of the month in which the invoice is dated and so if the invoice is saying the first of the month, then it's 61 days past the end of that month so it's 90 days – it's pretty simple maths," Mr Strong said.

Fonterra said in a statement there is no 90 day payment term, but admit it is possible for suppliers to wait up to 90 days.

The company stressed only 12 per cent of suppliers have been asked to make changes.

Federated Farmers said Fonterra should be communicating better, while Mr Stong refused the deal offered to him and forced the company to relent.

Suppliers to NZ's biggest company say they have been asked to wait 90 days to be paid. Source: 1 NEWS


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