'Grand Alliance' growing grass-fed beef exports to China
Alliance Group and Grand Farm have signed a strategic co-operation agreement with a focus on delivering more premium New Zealand grass-fed beef to Chinese consumers.
A non-binding shareholder initiated resolution for Fonterra director John Monaghan to be appointed as an independent director was also passed by a slim majority.
The results, announced at the annual meeting of shareholders in Dannevirke today (December 13), were welcomed by Meat Industry Action Group chairman John McCarthy.
"It's a great first step but just the start of a long campaign," he told Rural News.
McCarthy highlighted the 49% of eligible votes cast.
"That's a real buy-in from farmers for what we are trying to do... MIE has a real responsibility to farmers now, that's evidenced by that participation rate."
Reflecting on the Monaghan motion, McCarthy said he hopes Alliance's board heeds the wishes of a majority of its shareholders.
"It would be brilliant if they do."
Otago farmer Mark Paterson, who moved the Monaghan resolution, said he's delighted it was carried given the board had stood against it and the proxy voting format was "clumsy" and did not make it easy for shareholders not at the meeting to participate.
At the meeting, he and resolution seconder Mandy Bell "tried to emphasize the point there are actually two vacancies for independent directors on the board," he added, so even though the selection process to fill the position vacated by former chairman Owen Poole is reportedly "well advanced", there could still be a place for Monaghan.
"They've indicated they will look at it. Effectively the owners of the company have sent that direction to the board."
In the director elections, Morrison attracted 32% of votes cast with 20,555,396 votes, to Jason Miller's 31% (20,034,201) and Murray Taggart's 37% (23,540,916). Consequently Taggart, who farms at Oxford, Canterbury and is chairman of Alliance, is re-elected and Morrison joins the board in place of Miller.
Miller, from Southdown in Southland, had been on the board since 2007 when he was elected as a Meat Industry Action Group-backed candidate.
Morrison wants his election, and hopefully that of fellow MIE-backed candidates Dan Jex-Blake and Richard Young onto the Silver Fern Farms' board next week, to be "the catalyst for a turn-around in the sheep and beef sector and give the companies the confidence to take a new direction."
"It's the end of one part of the journey and the start of another one," he told Rural News.
Taggart acknowledged the turnout in the director elections reflectedheightened interest in meat industry issues.
"It is encouraging to see the turnout which demonstrates that our shareholders are very much interested in who represents them at the board table."
In 2012 the turnout for the directors election was 25% compared with 42% in 2011 and 30% in 2010.
Approximately 23.5% of eligible votes were exercised in the Monaghan resolution, either in person or by proxy, with 53% for (8,962,268) and 47% (7,957,895) against.
Taggart said that while the board has been focussed on finding a candidate with the right skills and expertise to replace Poole, they will take into account the views expressed by those who voted for the resolution.
"We expect to be in a position to make the appointment early in 2014."
He also thanked Miller for his commitment and contribution during his tenure on the board.
