Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


All For Delivering Better Returns To Farmers

Shareholders’ Council All For Delivering Better Returns To Farmers

Fonterra’s Shareholders’ Council is supportive of Fonterra’s proposal to increase its shareholding in Bonlac Foods from 25% to 50% to form an equal partnership with the Bonlac Supply Company.

The Council, which represents Fonterra’s more than 12,000 shareholders, has been briefed by the company on the initiative and believes the proposed joint venture is in farmers’ best interests.

Shareholders’ Council Chairman, Tony O’Boyle, said today that partnering across the Tasman made sense because it would ultimately deliver better returns into farmers’ pockets. The partnership would create a stronger, globally competitive business for Fonterra and Bonlac and strengthen Fonterra’s position as a leading global dairy ingredients supplier.

“It’s a good move strategically, because the two partners in Fonterra and Bonlac can deliver processing experience, good milk supply relationships and a global sales and marketing network that can get the products manufactured by Bonlac Foods out into the world markets efficiently and effectively.”

Mr O’Boyle said he believed farmers on both sides of the Tasman would see the sense of the proposal. For Fonterra’s shareholders it was a well structured deal and for Bonlac shareholders it laid out a clear path for improved performance.

“It’s fair, it makes strategic sense and in the longer term it’s a deal which will improve earnings for Fonterra’s shareholders and for Bonlac’s.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>