Coutts appointed chair-elect of Mainland Group
Fonterra has named Elizabeth (Liz) Coutts the chair of Mainland Group, the proposed divestment entity of the co-operative’s consumer business.
Fonterra's board is getting some kudos for listening to shareholder concerns as it works on a new capital structure.
Waikato farmer Andrew McGiven says the co-operative cannot have a 'one size fits all' capital structure.
"But at first glance it appears they have taken a lot of the shareholder feedback and concerns on board, and obviously there will be no 'one size fits all', but I think they have enough options now to crafct something fit for purpose," he told Rural News.
Fonterra is facing a challenging operating environment in New Zealand with new processing plants being set up by rivals, despite the milk pool remaining static.
The co-op faces the danger of being left with surplus stainless steel as farmers take their milk to other processors. A revised preferred option was unveiled by Fonterra last week.
McGiven says farmers realise that the national milk pool is static and could possibly shrink if impending environmental and climate regulations are implemented.
"Fonterra needs to maintain and entice suppliers to continue to be the dominant player in the NZ milk industry, if only to continue to maintain the mandate of setting the national milk price," he says. "Because if the corporates were allowed to do that, I don't think we could be enjoying the milk prices we are getting today."
Fonterra is proposing a number of changes to its preferred option released in May.
These include allowing sharemilkers and contract milkers to hold shares in the co-op if it moved to a farmer-only market.
The minimum shareholding requirement has been raised to 33% of milk supply (or 1 share/3kgMS), rather than 25% (or 1 share/4kgMS) as originally set out in the preferred option.
Entry timeframe is also being extended from five to six years. It has also extended exit timeframes for all farmer owners on the date of the vote to up to 10 or 15 years, including those who have already ceased in the past few seasons, but who still hold shares.
The co-op is also reviewing its market-maker role and looking further at how potential share buy-back options might support liquidity in a farmer-only market.
The capital structure is causing angst among farmers and has led to a slump in Fonterra share price in recent months.
Fonterra chairman Peter McBride has acknowledged the uncertainty that comes along with the capital structure review.
"We also acknowledge the significant challenges that it's creating for some farmers," he says. "The best way to give certainty is to ensure we have a full discussion as a co-op and get to a quality outcome."
He says Fonterra's board and management have consulted with over 5,000 farmer shareholders in the past three months. More meetings are planned in the coming weeks.
McBride says the board is open to further tweaks to its preferred option.
Rural retailer Farmlands has launched a new casual clothing range available across 42 stores nationwide and through its online store.
Federated Farmers says the health and safety changes announced this week by the Government represent the start of overdue reforms.
The Government is calling on rural New Zealanders to share their views on proposed regulations designed to improve the management of farm plastic waste.
For many urban New Zealanders, stepping into Pāmu’s Pinta dairy farm near Taupo last month was the first time they had had the chance to experience farm life up close.
After tasting 240 New Zealand made cheeses, judges have bestowed medals upon 199 of the entries.
Bay of Plenty’s top share farmers Andre and Natalie Meier are no strangers to the New Zealand Dairy Industry Awards winning circle.
OPINION: At last, a serious effort to better connect farmers and scientists.
OPINION: If you believe Maori Party president John Tamihere’s claim that “nothing dodgy” occurred at Manurewa Marae during the last…