Fonterra’s $3.2b capital return to farmers set to boost rural incomes and NZ economy
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
Fonterra says it is considering its options after losing a High Court case taken by former suppliers of a failed South Island processor.
Fonterra group director governance and legal Mark Cronin says the judgment refers to complex and difficult issues about special contracts with farmers outside the co-op.
"We are now reviewing the reasoning as well as the implications of the decision," he told Dairy News.
Fonterra bought the New Zealand Dairies Ltd Studholme plant from the receivers in 2012.
It offered the former suppliers to the plant 'growth contracts' on inferior terms in order to placate its existing farmer suppliers; the former suppliers took the co-op to court.
In a written decision, Justice Matthew Muir says Fonterra's reasons for doing so stemmed from a "perceived need to assuage internal politics within its supplier base and included also an element of 'messaging' for the benefit of other farmers who might in the future be persuaded to leave Fonterra and support an independent".
Cronin says Fonterra is disappointed with the ruling.
"We're disappointed in the outcome.
"Fonterra's acquisition of the former NZDL plant benefited Fonterra and the supplying farmers who'd been left out-of-pocket by NZ Dairies Ltd, enabling significant retro-payments owed to them to be paid and ensuring ongoing milk collection.
"We'll be considering all our options, including the option of appeal."
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.