increase font size
Fonterra chairman John Wilson is confident of securing 75% support among farmer shareholders for a reduced 11-member board.
Wilson says 75% is "a big number" but is achievable.
"We held over 400 farmer meetings and had really good farmer engagement," he told Rural News online.
Fonterra today released its final proposal on governance and representation; it is sticking with the draft proposal for an 11-member board, down from the current board of 13 (nine farmer directors and four independents).
However, seven of the 11 directors will be farmer-elected and four appointed. An earlier proposal, released in April, recommended six farmer directors, three independents and two "hybrids", who could be either elected or appointed.
Farmer shareholders told Fonterra they wanted a strong majority of farmer-elected directors and expressed concern how the hybrid seats would be filled.
Wilson believes the 7-4 farmer/independent model strengthens farmer ownership of the co-op.
He says Fonterra had a good look around the world at similar sized companies.
Fonterra is diverse - it collects and processes milk, sells ingredients and is a major FMCG (fast moving consumer goods) player globally.
"In Australia, similar companies have big boards and co-ops around the world tend to have even larger boards."
Wilson acknowledges that not all farmers will be happy with the proposal.
But he is confident farmers will look at the proposal as "a total package".
The co-op has also brought forward the review of the Shareholders Council by 12 months.
Fonterra will hold its special meeting in Hamilton on June 10.
Wilson and board members will hold another round of farmer meetings over the next two weeks to brief shareholders and garner support.
"We will have to do a lot of work to get the 75% support," he says.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
