Coast cow cockies switch to Westland

Some Fonterra farmers on the South Island's West Coast are jumping ship - cashing in their Fonterra shares, buying cheaper Westland shares and using the windfall cash to expand their business.

Westland Milk Products chairman Ian Robb said four or five farms in the Springs Junction area near Reefton had indicated they wanted to join the company this year.

Actual value shares in Fonterra are worth $4.38, while nominal shares in Westland are $1.50 - a farmer with around 300 cows moving from one company to the other could pocket about $300,000 tax-free. The only downside is Westland is predicting a lower payout - $4 to Fonterra's $4.15 this season.

"They sell their Fonterra shares and invest it into their farms; that's what we want them to do," Robb said.

- NZPA