Friday, 01 June 2012 11:05

TAF vote looms

Written by 

Fonterra's Board will be looking for a clear mandate from the cooperative's 10,500 dairy farmers when they vote on Trading Among Farmers (TAF) on June 25, says chairman Henry van der Heyden.

While the TAF resolution at the special shareholder meeting is an ordinary resolution that requires a 50% plus majority to be passed, he says the board won't be proceeding unless it has a much stronger mandate than that.

"I want a mandate that will unify the cooperative around this proposed evolution in our capital structure," he says. "This is the final vote in a long process. Shareholders have given us strong support in the earlier stages and that is what the board is looking for this time.

"TAF offers a means of sustainably protecting 100% farmer control and ownership into the future and reducing risk to our cooperative, so we're looking for a mandate that enables the board to continue to work towards protecting and strengthening Fonterra.

"We have listened to our farmer shareholders and their key concerns rest on two fundamental points: Preserving 100% control and ownership and the integrity of the Farmgate Milk Price.

"Accordingly, we have proposed a range of resolutions for farmer shareholders to vote on that will tighten limits on the size of the Fonterra shareholders fund, which is fundamental to 100% farmer control and ownership, and preserve the integrity of the

Farmgate Milk Price.

"These resolutions would require constitutional change and would therefore involve a 75% vote."

Dairy farmers supplying Fonterra throughout the country will receive shareholder Special Meeting voter packs in the next few days providing further detail on how it's proposed TAF will operate.

The material distributed to farmers included:

• The Notice of Special Meeting of Shareholders, including proposed resolutions,

• A copy of the Blueprint, the masterplan document for Trading Among Farmers,

• A Due Diligence Report provided to the Board for its May, 2012 meeting; and

• A Trading Among Farmers Summary Sheet

More like this

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter