Fonterra opens organic milk supply to South Island dairy farmers
South Island dairy farmers will soon be able to supply organic milk to Fonterra.
Former director Colin Armer wants the review team to be expanded from "a close knit group of directors and councillors to also include independents".
Armer also wants a submission process in advance of the board and council coming out with its working paper.
However this is unlikely as Fonterra chairman John Wilson says "a background booklet" will be issued to farmers in late January to kick off consultations.
Wilson told reporters after the co-op's annual meeting last week that an absolute timeline is in place.
"So we move to a special meeting in the middle of next year but prior to that there will be significant discussion and consultation with farmers.
"We intend to get a background booklet to them in late January with thorough discussions taking place through February and March.
"We will be taking on recommendations and feedback from our farmers to move forward after a couple of alterations to the special meeting."
However Armer told Rural News that he wants external experts to be part of the review process from the start.
"At the moment a close knit group of directors and councillors are going to do it, but we want the committee reviewing it to be broadened.
"Independent and external experts should be included in that committee and submissions should be called from farmers before [the directors and councillors] come out to us with a working paper. Because the direction of travel is already set at that point, isn't it?"
Asked if the board intended to rope in international experts for the review, Wilson says "a big scan was done three years ago".
"A global scan was done before the discussion was put on hold. We will have another look around, there's no doubt about that, and look at what our peers are doing and refresh that work."
A remit by former directors Greg Gent and Colin Armer to reduce the Fonterra board from 13 to nine was supported by 54% of shareholders at last week's annual meeting. This came despite the board and the Shareholders Council asking farmers to vote against the remit.
Armer says he expected the board to oppose the remit, but was surprised by the council's stance.
"The council simply misread the mood of shareholders," he says.
