Fonterra sales locking out farmers
3 December 2012
Fonterra sales locking out
The high price of Fonterra shares is forcing
farmers away from the cooperative model and is instead
increasing foreign profits, the Green Party said today.
They were responding to the Fonterra Shareholders Fund
unit price spiking after being listed on the NZX on
“I have had reports from farmers who can’t
afford to buy farmer shares in the cooperative because the
price is being driven up by traders of shares on the stock
exchange. These farmers will instead have to supply
independent companies, which leads to splintering of the
dairy industry,” said Green Party agriculture spokesperson
“Stock exchange speculation that
influences the price for trading among farmers (TAF) plays
into the hands of overseas interests and the Ruth Richardson
and Chinese interests in private dairy companies such as
Synlait,” said Mr Browning.
“Fonterra is not just
an asset up for sale to the highest bidder; it is a key
strategic asset for the dairy farmers of New Zealand.
“The Chief Executive of the NZX is right when he says
that the weight of investment money can push share prices
and distort the fundamentals of companies like Fonterra.
“We predicted that opening up Fonterra would break
apart its strength of bringing together New Zealand
producers, and immediately that has happened.
“Lessons from the division of ENZA and the pip fruit
sector, and the meat sector should have been
“New Zealand farmers should be encouraged
into strong cooperative models to protect intergenerational
benefits; speculative outside investor interests must be
curbed,” said Mr Browning.
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