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 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."
