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


Greater flexibility will benefit supplier Shareholders

27 February 2013

Greater flexibility will benefit supplier Shareholders

Fonterra Shareholders’ Council Chairman, Ian Brown said the range of measures announced today by the Fonterra Board of Directors will be welcomed by all Fonterra Shareholder Farmers.

Mr Brown: “A bonus share issue for supplier Shareholders and greater flexibility for new and existing suppliers to become fully ‘shared up’ are pragmatic Board initiatives that the Council fully supports.

“The bonus share issue will ease pressure on Farmers, some of whom may have struggled to stay with the Co-op due to the requirements to meet the share standard, particularly given the tough conditions many suppliers are facing at the moment.

“Also important is that the redistribution of profit, in the form of the bonus shares, reinforces the Board’s claim that TAF was not a revenue gathering operation.”

Mr Brown said the new contract options will bring some relief for new and existing suppliers.

“The proposals go a long way to ensuring enduring Farmer ownership and control of Fonterra.

“The revised contracts will enable Farmers to come into the Co-op without the issue of Share Price acting as a hindrance and ease the path to Farmers becoming fully share-backed suppliers.”

The Board also announced an unchanged forecast payout for the 2012/13 season of $5.90 -$6.00 made up of a Milk Price of $5.50 per kilogram of Milk Solids and 40c-50c of earnings per share.

“Given the negative effect the weather has had on production over the past few months the Council is comfortable with the announced forecast payout,” Mr Brown said.


The Fonterra Shareholders’ Council represents the interests of Fonterra Farmers to the Board of the Co-operative and plays an active role in monitoring and assessing the governance and performance of Fonterra. There are 35 Councillors who are all Shareholders elected by their fellow Farmers in wards across New Zealand.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news