Monday, 25 June 2012 16:49

Feds call for unity after ‘yes’ vote

Written by 

With 66% of Fonterra shareholder-suppliers backing Trading Among Farmers (TAF), Federated Farmers is calling on the cooperative to unite. This call comes off an 85% turnout among shareholders.

"Whatever the result, we wanted it to be clear one and the shareholders have delivered it. It was a reasonable voter turnout," says Willy Leferink, Federated Farmers Dairy chairperson.

"Attention now turns to completing the parliamentary stages of the Dairy Industry Restructuring Amendment Bill (DIRA) which will give effect to TAF.

"The second vote on the constitutional changes, unfortunately, only got a 73% endorsement, 2% short of the 75% requirement. Federated Farmers understands TAF will proceed under the B constitution voted on in 2010, until Fonterra's AGM in November.

"Federated Farmers is disappointed this resolution did not quite make it, as this was the important one around putting controls on TAF.

"Now we have to ensure parliament puts the limits on TAF the federation has asked for into DIRA as it proceeds with the legislation.

"There has been a lot of debate and some shareholders may feel embittered by the result. I am asking them to hang in there to see if the many promises made about TAF are delivered.

"I would also like to see those from both sides put their hand up for leadership positions, either with us, the Shareholders Council or on the board itself. The best long term protection shareholders can get is by being firmly inside the tent.

"In the meantime, Federated Farmers is asking Parliament to revise some aspects of the bill following the TAF vote.

"The state is going too far by mandating 'fair value' as the way Fonterra must set its share price by. It should be a decision for the cooperative's 10,500 shareholders and not politicians.

"Given Parliament wants to dictate share price setting and even the milk price framework, we wish to see legislative protections put around the Fonterra Shareholder's Fund.

"We would like to see Fonterra's constitution reinforced in the bill, especially when it comes to the size of the Shareholders Fund, number of dividends a farmer can trade into it and a maximum number of units any one outside investor can hold in the fund.

"Having these protections in the bill would remove the sting some shareholders feel while reducing residual concerns a great many more possibly harbour. Certainly it would not be inconstant with other interventions already contained in the bill.

"Given farmer-shareholders are promised even greater things from TAF going forward it is now on management and the board to really deliver," Leferink says.

Meanwhile the Fonterra Shareholders' Council says it is proud of the highest every voter turnout in the history of Fonterra.

The council, which safeguards the interests of the Co-op's 10 500 Shareholders, said 85% of milk solids voting was a great result for the co-op and showed the high level of engagement its shareholders had and the importance they attributed to the Trading Among Farmers (TAF) decision.

Chair of the Fonterra Shareholders' Council's representation committee, Greg Mitchell: "The fantastic united approach from councillors, directors, area managers, networkers and our shareholders throughout the country has been instrumental in securing this outcome.

"We have been driving this for the past month and we could not ask anything more of our farmers than them exercising their right of control by voting."

With a convincing 66% vote in favour of implementing TAF the co-op's board have stated that the result means Fonterra will move forward with TAF.

Shareholders' Council chair, Ian Brown said the council will, as always, take a considered approach to the board's decision.

"Shareholders have done their part and the council will now discuss this matter in depth at our next meeting in July."

More like this

Editorial: Long overdue!

OPINION: The Government's latest move to make freshwater farm plans more practical and affordable is welcome, and long overdue.

Fonterra names Templeman-Jones to Mainland Group board amid divestment

As part of preparing for a potential IPO in relation to the divestment process for its global Consumer business and integrated businesses Fonterra Oceania and Sri Lanka, Fonterra has named Anne Templeman-Jones as chair-elect of the Audit and Risk Committee for the Mainland Group board.

Contract milkers hit hard by drought crisis

Many contract milkers in badly drought affected regions around the country are coming under severe financial stress and farm owners are being urged to help them through a bad patch until the start of the new season.

Featured

Being a rural vet is ‘fantastic’

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association Te Pae Kīrehe (NZVA) awards.

National

Helping protect sheep from parasites

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Farmer-led group buys Novag

While the name and technology remain unchanged and new machines will continue to carry the Novag name, all the assets,…

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter