Wednesday, 12 November 2014 16:16

Motion to halt expansion voted down

Written by 
Fonterra shareholders cast votes Fonterra shareholders cast votes

A MOTION calling for Fonterra to halt its expansion strategy until milk payout recovers has been defeated.

Only 20% of Fonterra shareholders supported the motion by farmer Murray Beach, Marlborough.

At Fonterra's annual meeting in Palmerston North today and before the vote, Beach told shareholders that the co-op's strategy to expand was a burden on farmers. The motion was not supported by either Fonterra's board or the Shareholders Council.

Fonterra director Malcolm Bailey told the meeting that Beach's motion, if passed, would create a major problem for the co-op.

"We will end up with extra milk production that we wouldn't be able to process," he says.

Shareholders Council chairman Ian Brown says he had dialogue with Beach after he had filed the motion with the board.

"What is suggested by Murray Beach is not prudent," Brown says.

One shareholder told the meeting he sympathised with Beach's motion but would not vote for it.

Fonterra chairman John Wilson says he was not surprised with Beach attracting 20% support.

Beach says his remit wasn't a knee-jerk reaction to this year's low forecast. Rather, it reflects two poor years, followed by one good, and now a "really bad year."

"We should be getting more money from Fonterra than the other milk companies are paying their suppliers but we're not."

Beach adds he's not totally against Fonterra's development plans, particularly those in New Zealand, but believes the cooperative should reduce debt before embarking on more expansion which is effectively at farmers' expense.

 

More like this

No backing down

OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving late.' 'The portions are wrong.' 'I wanted caviar.'

Fonterra mulls options - sale or IPO

An outright sale of Fonterra’s global consumer business is more likely than a float, says Forsyth Barr senior analyst equities, Matt Montgomerie.

Fonterra updates earnings

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

Featured

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers  the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

National

The Cook Islands squabble

The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of…

Machinery & Products

Nedap NZ launch

Livestock management tech company Nedap has launched Nedap New Zealand.

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

» Latest Print Issues Online

Milking It

O Canada

OPINION: Donald Trump's focus on Canada is causing concern for the country’s dairy farmers.

Plant-based fad

OPINION: The fact that plant-based dairy is struggling to gain a market foothold isn’t deterring new entrants.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter