Tuesday, 19 September 2023 08:55

Put capital structure on the agenda

Written by  Sudesh Kissun
Fonterra shareholder and Cambridge farmer Garry Reymer. Fonterra shareholder and Cambridge farmer Garry Reymer.

Fonterra shareholder and Cambridge farmer Garry Reymer wants Fonterra to include capital structure on the agenda at the next round of farmer meetings.

Reymer believes that the governance and representation as well as capital structure are interconnected, and both are important to the survival of the co-op.

"If we go back first for a bit of history, it was common to have a dairy co-op in almost every small rural centre. When that was the case, the farmers all knew the board personally. They saw them at the footy club, church, school or wherever. They all had active discussions and farmers felt involved and connected. As the mergers took place, this was held together by better transport to larger centres and more regional co-ops with 'ward' director, so somene with a close connection to your region.

"Fonterra now has no wards, and four of the eleven directors are not even farmers (appointed by the board) and Fonterra wants to reduce the size of its board.

"To make it worse, from a farmer representation point of view only, the definition of 'farmer director' is very loose and if you are a trustee of a farming company you qualify as a farmer director; this can make that director no different from an appointed director."

More like this

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

LCAs tackle false narratives

The quest to measure, report and make sense of the energy that goes into food production has come a long way in the past 25 years.

$3b windfall?

Fonterra's proposed sale of its global consumer business could fetch over $3 billion but not all proceeds will end up in the pockets of farmer shareholders.

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

National

Organic sector backtracks on GE

Organics Aotearoa New Zealand (OANZ) says the Government’s new gene editing and genetic modification reforms could leave New Zealand as…

$3b windfall?

Fonterra's proposed sale of its global consumer business could fetch over $3 billion but not all proceeds will end up…

Machinery & Products

Milk Sustainability Centre launched

The recently announced Milk Sustainability Centre – a collaboration between global giant John Deere and milking and feed specialists De…

Data connection made easier

New Holland and Case IH are introducing new advancements in their precision technology stack to make farming easier and more…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter