Monday, 25 June 2012 16:20

TAF gets 66% support

Written by 

Fonterra shareholders have voted in favour of implementing Trading Among Farmers.

The resolution for Trading Among Farmers received a 66.45% vote in support at Fonterra's Special Meeting today, with two out of every three votes in favour.

Fonterra chairman Henry van der Heyden said the final vote on the share trading scheme attracted a record voter turnout.

"Our farmers have voted in big numbers, representing 85% of the co-op's milksolids. It is great to see so many taking part and having their say.

"Now we can move forward with this important evolution in our capital structure," he says.

"We've spent six years talking about capital structure and it has been a rigorous debate and process. Our farmer shareholders have made a great contribution and the final version of Trading Among Farmers is all the richer because of that input."

Sir Henry said TAF ensures a stable, permanent capital base for the co-op and secures its future.

"We broke new ground with the formation of Fonterra and now we have the support from our farmer shareholders to refine that model and to break new ground again.

"As in the past, our farmer shareholders will now get behind the co-op as we move forward. That's what we all want, a united Fonterra.

"Over recent months we have used some of the best legal minds and cooperative specialists to stress test the concept and proposed trading system as part of the Due Diligence process. This final vote shows the majority agree that TAF is a fundamental pillar for the co-op and the board is absolutely unanimous in the belief that this is a lasting solution."

Van der Heyden says the board listened to farmer shareholders' concerns on preserving 100% farmer control and ownership and the integrity of the Farmgate Milk Price.

"We asked our farmers to vote on constitutional changes which would tighten limits on the size of the Fonterra Shareholders' Fund, which is fundamental to 100% farmer control and ownership, and preserve the integrity of the Farmgate Milk Price. This resolution required a 75% vote and received 72.8% support."

The board will take this resolution back to the next annual meeting in November and will seek Shareholders' Council support for this. In the interim, further planning on Trading Among Farmers will proceed within the parameters outlined in Resolution 2. Van der Heyden says the board believed this was in the best interests of the co-op.

Fonterra chief executive Theo Spierings says the vote for TAF means Fonterra can be in charge of its own destiny.

"TAF will stop money washing in and out and give the co-op a stable, permanent capital base to deliver on its Strategy Refresh.

"There is no cooperative anywhere around the world that is the same as Fonterra. TAF is completely unique as is the solution to eliminating redemption risk.

"We will now be able to implement our strategy and remain a relevant player in the global dairy industry. With overall demand for dairy growing, TAF will ensure that we are well placed to grow volumes and protect our position as the world's leading dairy exporter."

Van der Heyden the Board is still working towards a November launch for TAF but this will be dependent on market conditions. The pre-conditions in the constitution still need to be finally satisfied, including the support of the Shareholders' Council. The board is confident that the necessary changes to the Dairy Industry Restructuring Act and the waivers are on track for this to happen. The board will determine an exact launch date closer to the time.

The result of the vote is as follows:

• Resolution 1: Trading Among Farmers 66.45%

• Resolution 2: Constitutional Changes for Trading Among Farmers 72.8%

• Resolution 3: M. Beach Proposal 20.2%

• Resolution 4: Upson Downs Limited Proposal 23.26%

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