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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.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
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Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
DairyNZ chair Tracy Brown has waded into the debate around soaring butter prices, pointing out that the demand for dairy overseas dictates the price to farmers and at the supermarket.
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Missing fresh mozzarella cheese made at home in Bari, southern Italy, Massimo Lubisco and his wife Marina decided to bring a taste of home to New Zealand.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
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