increase font size
Marc Rivers
Fonterra says it's getting positive signals from the Government on regulatory changes needed to facilitate its new capital structure.
The co-operative's chief financial officer Marc Rivers says discussions are ongoing to make sure all interests are protected under any new regulatory framework.
"We are working through with various stakeholders in Government.
"The signals have been pretty positive," Rivers says.
In December, farmer shareholders gave the co-operative the green light to change its capital structure.
Over 85% of farmers voted for a more flexible shareholding structure, allowing farmers to hold fewer shares and widening the pool to include sharemilkers, contract milkers and farm lessors as associated shareholders.
Fonterra believes it woul make the co-operative more competitive with rival processors who don't require farmers to outlay cash for shares to supply milk, and who have been gaining market share.
The changes requires the Government to amend the Dairy Industry Restructuring Act which enabled Fonterra to be set up 20 years ago.
Fonterra chief executive Miles Hurrell says the "flexible shareholding" capital structure will be critical in helping the co-op maintain a sustainable New Zealand milk supply in an increasing competitive environment.
"Following the successful farmer vote, we are continuing to work with the Government on a regulatory framework which supports the structure.
"These discussions are progressing well.
"While we don't have a firm date for when regulatory changes will be made, we expect to be able to provide a timeline for farmers in the next couple of months."
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.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
