Prospectus - Fonterra

57Fonterra Co-operative Group LimitedNotes to the Financial StatementsFor the 14 months ended 31 July 200819 Related party transactionsNote 20 identifies all significant subsidiaries. All of these entities and key management personnel are relatedparties of the Company. Other related parties include entities controlled by or significantly influenced by keymanagement personnel or their close family members.Key management personnel include the Board and the Fonterra Leadership Team. The Board received Directors’fees totalling $2 million for the 14 months ended 31 July 2008 (year ended 31 May 2007: $2 million). TheFonterra Leadership Team received short term employee benefits of $12 million (year ended 31 May 2007: $9million) and termination benefits of $1 million (year ended 31 May 2007: nil).Other related party transactions are as follows:i) Sales and purchases$ million14 months to 12 months to31 July 2008 31 May 2007Sales of goods:Subsidiaries 9,198 4,8709,198 4,870Sales of services:Subsidiaries 31 431 4Goods sold to related parties are primarily commodity products and are provided on an arms length basis, undernormal trade terms.Services provided to related parties include management fees and are provided on an arms length basis, undernormal trade terms.$ million14 months to 12 months to31 July 2008 31 May 2007Purchases of goods:Subsidiaries 19 10Key management personnel 210 103229 113Goods purchased from related parties are primarily commodity products, which are acquired on an arms lengthbasis and under normal trade terms.ii)Period end balances arising from sales/purchases of goods/servicesProvisions for doubtful debts on related party balances are disclosed in note 6.As at31 July 2008$ millionAs at31 May 2007Receivables from related parties:Subsidiaries 19 1719 17Payables to related parties:Subsidiaries 19 238Key management personnel 24 1843 256