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Updated at 12:43 pm on 25 June 2012
Farmers who have been supplying the failed New Zealand Dairies' milk processing plant at Studholme have signed a new contract with Fonterra.
If given the approval by the Commerce Commission, Fonterra plans to buy the Russian-owned factory near Waimate, which went into receivership last month.
As part of the purchase agreement with the receivers, Fonterra would pay the 27 farmers the $25 million theya re owed for last season's milk.
Suppliers committee chair Robert Borst says that under the new contract, the farmers would continue supplying the plant during the sale process.
They would then supply Fonterra for six years on a growth contract, buying shares to match production in the final three years, bringing them in line with other suppliers.
Mr Borst says the Commerce Commission is expected to take between eight and 15 weeks to decide whether to approve Fonterra's contract and purchase of the plant.
Copyright © 2012, Radio New Zealand
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