increase font size
For Fonterra farmers, the equation is simple – vote yes to divest the co-op’s consumer and related businesses and get a capital return of $2/share – a whopping $3.2 billion.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
For Fonterra farmers, the equation is simple - vote yes to divest the co-op's consumer and related businesses and get a capital return of $2/share - a whopping $3.2 billion.
The vote, to take place at an online special general meeting on October 30, needs 50.1% support to pass. By all accounts, a yes vote is a shoe-in.
However, for meat co-op Alliance things are not as straightforward.
A $250m investment by Irish company Dawn Meats requires 75% support from voting farmer shareholders. With an alternative proposal doing the rounds, where shareholders will be asked to inject capital into the ailing meat processor to maintain its co-op status, a 75% yes vote for the Dawn Meats proposal could be too big a hill to climb.
Alliance bosses are delivering a stark warning to shareholders in meetings: vote yes to the Dawn Meats proposal or the company risks insolvency due to its level of debt.
They have also tabled before shareholders an independent advisory report by Northington Partners that assessed the midpoint of Dawn Meats' investment at $1.18/share - a 93% uplift on the midpoint share value for current Alliance versus Alliance post-investment.
Alliance must pay off a $188 million debt to its bankers by mid-December, a deadline that has already been extended from the end of September.
A no vote at the October 20th special general meeting would send management back to the banks to negotiate a new deal.
However, if the banks don't agree, Alliance won't have any working capital facilities next year. That could even signal the beginning of the end for a proud farmer-owned co-operative formed in 1980. Let's hope it doesn't come to that.
Over the next few weeks, shareholders of both co-ops - Fonterra and Alliance - will be thinking long and hard before casting their votes.
Whatever they decide will herald a new era for their respective co-operatives.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
A Palmerston North shearer has been sentenced to six months' community detention and 12 months' supervision after being found to have physically abused three lambs while shearing them.
OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…
