Thursday, 15 November 2018 12:25

Fonterra farmers vote strategically — Editorial

Written by 
Farmers liked Leonie Guiney's message. Farmers liked Leonie Guiney's message.

OPINION: Fonterra farmers have delivered a stinging rebuke to the co-op leaders: don’t expect us to rubber stamp your director candidates, was the message in last week’s results.

It’s clear from the results that Fonterra farmers voted strategically in the board election.

The Fonterra board and shareholders council endorsed three candidates: sitting director Ashley Waugh and two newcomers Peter McBride and Jamie Tuuta.

But shareholders had other ideas: they rejected Tuuta and Waugh but endorsed McBride, the outgoing chairman of Zespri.

They backed South Canterbury farmer Leonie Guiney, a stunning return by the strongest of critics. Another farmer-endorsed candidate, John Nicholls, failed to get elected.

Guiney retired from the board in 2017 after her first three year term but her attempt at re-election ended in controversy.

She was also at the centre of a court action taken by Fonterra over the alleged release of confidential board information.

Guiney campaigned for “a simpler, more disciplined but successful cooperative”. Fonterra needs to cease trying to be what it is not, she said. Farmers liked her message.

Last week’s election results also called the election process into question.

The co-op’s revised election process, implemented last year, requires farmers to vote ‘yes’ or ‘no’ against each candidate. Successful candidates must achieve the 50% ‘yes’ vote threshold.

Online voting requires farmers to cast a vote against each candidate — either ‘yes’ or ‘no’. To win, a candidate must get at least 50% of those voting for him or her, so ‘no’ votes are as essential as ‘yes’ votes. 

After farmers failed to elect three directors last week, the Fonterra shareholders council has signalled another election to elect the remaining director.

It seems Fonterra’s board and the council neither expected anyone to stand outside the independent nomination panel process nor thought through the implications. But farmers have already worked it out and voted strategically.  

There’s definitely confusion over the Fonterra director election protocol. That’s incredible for an election, throwing up all sorts of interesting combinations and permutations.

Fonterra has had a challenging year, and after recording its first net loss last financial year it is promising major changes. Shareholders are watching.

For the time being they have put their faith in the new chief executive Miles Hurrell. However, the board has been put on notice: if they don’t shape up, they must ship out.

 

More like this

Fonterra lifts global ranking

At least some not-bad news for Fonterra: the co-op has climbed to fourth-largest in the world’s dairy company rankings.

Payout unchanged, dividend axed

Farmgate milk price forecasts remain unchanged despite Fonterra’s decision to not pay a dividend for the 2018-19 season, says chief executive Miles Hurrell.

 
 

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Milk on tap

The days of cafes getting milk in plastic bottles may be numbered if two young Dunedin entrepreneurs have their way.

Behind the eight ball

Global animal health company DSM says it has a product that can help reduce emissions from cows by up to…

» Connect with Dairy News