Fonterra says it's trying to be fair and do the right thing by making changes to its payment policy.

Some trade suppliers had to wait up to three months for payment.

Now the dairy giant has resolved to pay them on normal business terms after a backlash.

Fonterra Chief Financial Officer Marc Rivers says it's not in their interest to have vendors who are in an unhealthy situation.

"As we heard back from many of them, cash flows were very important and certainly we can understand that it would be the case for smaller companies versus larger ones." 

LISTEN ABOVE AS MARC RIVERS SPEAKS WITH LARRY WILLIAMS