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

 

Statement On Shareholders' Council Annual Review

Media Release

10 November 2008

Statement On Shareholders' Council Annual Review

Fonterra farmers would value the independent and critical assessment of the Co-operative's performance for the 2007/08 year outlined in the Shareholders' Council Annual Review, says Chairman Henry van der Heyden.

"In a record year when we achieved a $9.1 billion payout to our farmers it's important to be able to stand back and look at the business, the operating environment and how we performed against the targets."

He noted the Council's disappointment that Fonterra had failed to meet the targets for Total Shareholder Return (TSR) and Return on Net Assets (RONA).

"Overall Fonterra had an exceptionally good year in terms of payout but I agree with Council that there is room for continuous improvement and looking at where we can do better. We will be sitting down with Council to take a good hard look at their comments and identifying areas where we can lift our game and sustain our performance over the longer-term."

Mr van der Heyden says part of the Council's role is monitoring Fonterra's performance against agreed criteria and providing a perspective on strategic issues such as the company's capital structure, competition and business plans.

"One of the key issues in this regard that remains on the table is our discussions and consultation with farmers over Fonterra's capital structure. The Council's report talks about the importance of tackling the 'real and undiminished' issues of redemption risk, capital for growth and investment choice.

"This will be a key focus for Board, Council, management and our farmers in the year ahead. At the same time we recognise that we have a challenging business environment and we will not be taking our eye off the ball in terms of performance," he says.

- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Slightly Softer Growth Expected In PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. More>>

ALSO:

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO: