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

 

Bonlac Supply Company Shareholders Vote


Bonlac Supply Company Shareholders Vote For Fonterra Proposal

Farmer shareholders of Victorian-based Bonlac Supply Company Limited today voted to restructure Bonlac Foods Limited. Support for the restructuring proposal was strong with 93 per cent of votes in favour of the proposal.

The restructuring will see Fonterra Co-operative Group Limited increase its shareholding in Bonlac Foods from 25 per cent to 50 per cent with Bonlac Supply Company, a cooperative of Victorian and Tasmanian Dairy Farmers, owning the other 50 per cent.

Following today's vote, the transaction is expected to be completed on Tuesday, September 9. From that day, Fonterra will manage Bonlac Foods under the terms of a management agreement. It will also commit to buy all of Bonlac Foods' production and assume responsibility for sales and marketing.

Henry van der Heyden, Chairman of Fonterra Co-operative Group, said that the restructuring plan seeks to restore the viability of Bonlac Foods and achieve long-term benefits for everyone involved.

"Our immediate priorities will be to reduce costs and to grow milk supply. Bonlac Foods has estimated that the restructuring will generate annual savings of A$35-38 million (NZ$39-43m)," he said.

Mr van der Heyden said that the restructuring plan provided shareholder value to both parties. Bonlac Foods would be able to significantly rationalise its overheads and improve its financial performance, improving the ability of Bonlac Foods to pay returns to shareholders from operations. He said Fonterra would benefit by being able to better meet global customer demands.

In accordance with the management agreement between Bonlac Foods and Fonterra, Bruce Donnison was appointed General Manager of Bonlac Foods. Mr Donnison has 17 years experience in the New Zealand dairy industry and in recent years has been responsible for Fonterra's operations at Edendale where 10 million litres of milk are processed each day.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>

Environment Commissioner: Transparent Overseer Needed To Regulate Water Quality

Overseer was originally developed as a farm management tool to calculate nutrient loss but is increasingly being used by councils in regulation... “Confidence in Overseer can only be improved by opening up its workings to greater scrutiny.” More>>

ALSO:

Deal Now Reached: Air NZ Workers Vote To Strike

Last week union members voted overwhelmingly in favour of industrial action in response to the company’s low offer and requests for cuts to sick leave and overtime. More>>

ALSO: