US remains important market - Fonterra
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
The proposal to reduce the size of the Fonterra board is one the co-op can no longer ignore say its proponents, Greg Gent and Colin Armer.
The proposal failed to meet the 75% support required to change the constitution but the level of support is a massive message to the board they say. Over 54% of shareholders backed the proposal.
"The Trading Among Farmers proposal got 66% support with millions spent so we are thrilled with the support we have received," says Armer.
"Something has to happen now. The whole thing disappeared three years ago but there is nowhere for the board to hide now."
Gent says the vote was a huge success.
"We had little resources and the company worked hard against us."
Armer said the big loser in this debate was the Shareholders Council.
"The shareholders council has been found wanting and totally misread farmers' views on the subject," he says. "Their criticism of our proposal was absurd.
"The resurrection of the governance review after three years was a last minute jack-up between the Council and the board which had only one purpose – to defeat our proposal," says Armer.
He says that the governance review is still inadequate.
"This upcoming review needs independence, experience, and farmer input into its Terms of Reference," he said. "Right now shareholders don't know the terms of reference and the review is being conducted by a group that lacks the experience or independence needed to make sure we get the right structures into the future."
Gent said that he and Armer had achieved what they wanted to.
"While we'd love to have got our proposal over the 75% line line we always knew that it was a huge mountain to climb," he said. "The company has far better resources than us to communicate with its 10,000 shareholders."
In spite of the result the pair is confident that the governance review will not be shelved for another three years. However they are not so sure that the review will result in a smaller board of directors.
"We will need to wait and see about that," says Armer.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
OPINION: Farmers nationwide will be rubbing their hands with glee at the latest news from the Government about the RMA reforms.
Holstein Friesian NZ and Link Livestock have agreed on a strategic partnership to provide HFNZ members with comprehensive services from one of New Zealand's most respected dairy men.
Rural retailer Farmlands has launched a new casual clothing range available across 42 stores nationwide and through its online store.
OPINION: Is it the beginning of the end for Greenpeace?
OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.