Wednesday, 13 May 2020 09:32

Fonterra council review report due in August

Written by  Sudesh Kissun
James Buwalda. James Buwalda.

A final report into the review of the Fonterra Shareholders Council will be handed to farmers by the end of August.

The steering group formed to review the council and its core functions started surveying Fonterra farmers and sharemilkers last week on “critical issues”. It is also seeking the views of Fonterra’s board and the council. 

In an email to farmers this month, the steering group outlined its timetable.

Following a two-week survey, the group will analyse critical issues and identify options. In early June it will consult shareholders and sharemilkers on its core findings before identifying preferred options.

Any changes to the co-op’s constitution and council by-laws will be voted on by shareholders at its annual general meeting in November.

The steering group chaired by former public service executive James Buwalda told farmers it’s working towards a final report by the end of August, but is wary of COVID-19.

“This is slightly later than originally envisaged by the terms of reference, but still in good time for any recommendations requiring shareholder approval to be voted on at this year’s annual meeting,” the steering group says.

“There is some risk the timeline might be affected further by the COVID-19 environment.”

It says the review process aims to encourage and support farmer participation and feedback. 

“It is also committed to transparency, including by publishing feedback obtained through consultations. 

“Farmer feedback will be sought at two stages and we encourage you to have your say.”

The future of the council featured at last year’s annual meeting: two motions filed by disgruntled shareholders seeking independent review of the council failed to reach the 50.1% threshold.

Southland farmer Tony Paterson, whose motion received 44% support, is keeping a close eye on the review process.

Paterson told Dairy News that he didn’t apply to serve on the steering committee.

“I didn’t apply for a position as we didn’t think the process outlined by council would deliver anywhere near the independent thinking and rational decisions that we where after,” he says.

“We are very interested to see how their process unfolds and whether they can deliver on their transparent process.”

A group of Waikato farmers, whose motion garnered only 22% support at last year’s annual meeting, want the council scrapped.

They are urging shareholders to make their views known to the steering group.

Fonterra Shareholders Council chairman James Barron says it’s important for all shareholders to participate in the review process.

More like this

Winston Peters questions Fonterra divestment plan

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.

Editorial: A new era for two co-ops

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.

Should co-op sell its consumer brands?

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.

Featured

'One more push' to eliminate FE

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.

Winston Peters questions Fonterra divestment plan

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.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter