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


Fonterra Must Look At All Options

5 October 2004

Fonterra Must Look At All Options

Fonterra Co-operative Group Ltd must carry out a detailed and robust study of all feasible options when reviewing its capital structure, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

"For dairy farmers to have confidence that Fonterra's review is the best it can possibly be, Fonterra must be diligent and serious about looking at every possible option on the path to a better structure. Such a review will deliver the best outcome for Fonterra's farmer suppliers, the dairy industry, and the national economy," Mr Wooding said.

DFNZ today released the first of four independent discussion papers about Fonterra's capital structure and in particular the co-op's controversial fair value shares and much-criticised peak notes. DFNZ is the dairy industry group of Federated Farmers of New Zealand (Inc).

"We carried out this research because DFNZ wants to give its members independent, reliable and up-to-date information about Fonterra's capital structure. Our involvement will mean that we can help get the best possible outcome for the co-operative and farmer shareholders," Mr Wooding said.

"It is crucial that farmers are fully informed about the current framework and the pros and cons of alternative structures as the co-operative moves forward."

Mr Wooding said that Fonterra must put everything on the table during its review.

"Farmers are prepared to engage in meaningful dialogue on the issues, but will resist any attempt to foist unpalatable options on them after a period of Clayton's consultation. There must be no hidden agenda in the review.

"I have had a number of meetings with Fonterra and so far I am comfortable that it is approaching the review with integrity, and I look forward to it releasing a similarly detailed analysis of options for consideration by shareholders."

The first of the four discussion papers is available at Temaining three will be released over the next seven weeks:

Paper one: The current structure (released today). Paper two: Strengths and weaknesses of the current structure (released October 26). Paper three: Factors to consider in a good capital structure (released November 8). Paper four: Potential options for a future capital structure (released November 22).

The staged release allows dairy farmers time to absorb the information in bites during a very busy period on their farm.

Mr Wooding said the papers were intended to inform and raise debate rather than say which option, if any, is best.

"DFNZ has not taken a position on a preferred option, or indeed if changes are the best option," Mr Wooding said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

Environment: Preliminary Environmental Data On New Zealand’s Air Quality Released Today

The Ministry for the Environment and Stats NZ have published the Our air 2021: preliminary data release today. We are currently working to revise the Our air 2021 report to incorporate analysis of the World Health Organization (WHO) 2021 air quality guidelines that were released on 23 September 2021... More>>

Statistics: Food Prices Rise For Sixth Consecutive Month
Food prices rose 0.5 percent in September 2021 compared with August 2021, mainly influenced by higher prices for grocery food and meat, poultry, and fish, Stats NZ said today. September’s movement is the sixth consecutive monthly rise. After adjusting for seasonality, prices rose 0.9 percent... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>

Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>

Bayleys: Latest Lockdown Adds Further Fuel To Industrial Property Market

The recent construction shutdown resulting from Auckland’s Covid 19’s lockdown restrictions has put additional pressure on an industrial property market that is already struggling to keep pace with demand... More>>