Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
The New Zealand's Exchange (NZX) and the European Energy Exchange (EEX) are set to take an equal one-third ownership of Global Dairy Trade (GDT), launched by the co-op in 2008 and which has to date traded dairy products worth over US$30 billion.
The deal is subject to the approval of boards, clearance from European or any other relevant competition law authorities, and finalisation of transaction documentation. It is expected to be completed mid-2022.
Fonterra chief executive Miles Hurrell says the move to a broader ownership structure marks the next step in the evolution of GDT.
It further enhances the standing of GDT as an independent, neutral and transparent price discovery platform, giving it a presence in prominent internatinal dairy producing regions, and creating future growth opportunities, says Hurrell.
"This is good news for our farmer owners, unit holders, and all dairy industry participants and is expected to lead to greater volumes being traded on GDT.
"It will bring more participants and transactions, stimulating further growth of risk management contracts available on financial trading platforms.
"We all know that dairy is one of the most volatile traded commodities," he says.
"This partnership is another step in helping to manage this risk for everyone - from the farmer through to the customer at the end of the supply chain.
"A more liquid dairy-trading environment allows for the growth of financial tools which can be used by all participants to better manage price volatility."
Hurrell says Fonterra's focus has been about securing the best partners and that NZX and EEX share the co-op's vision for a stronger, more liquid auction platform that benefits all involved.
