Lumsden farmer Tony Paterson spoke at the Masterton meeting in person in support of three resolutions he had put forward for farmers to consider and vote on.
In summary, they were that the Shareholders’ Council engage an external expert to produce reports that include commentaries on the company’s performance and achievements compared to the board of directors’ statement of intentions; that the council’s annual budget be reduced, in line with its constitutional purpose, by about $1 million; and that the council’s funding be in the form of a milk levy.
To be successful, each resolution needed the support of at least 50% of those who voted.
They received 39.70%, 37.65% and 35.62% respectively.
Paterson says he always knew it was going to be a close vote and he is happy to have garnered the support received.
He says the council needs to acknowledge that more than a third of those who voted did want the change he was asking for.
“I’m humbled by the support and I thank those people (who voted for the resolutions),” he said.
He is pleased that after he called for change to the council’s structure and operations at last year’s annual meeting, which attracted about 45% of yes votes, a review of the council’s activities was undertaken.
“Without the resolutions this year and last year that wouldn’t have happened,” he said.
“There will be change and we will be watching.”
Shareholders’ Council chair James Barron is confident that once the changes recommended in the report that followed the review are implemented during the next 12 months, concerns raised by dissatisfied farmers will be addressed.
The review of the council’s activities was conducted by a steering group that had a majority of members independent of the council and board.
Barron says those members who were not independent provided knowledge of what the council’s role was.
He says all shareholders had equal and ample opportunity to make their views known to the steering group, which sent an issues and options discussion paper to farmers in late August.
That was followed by a nationwide series of meetings to hear farmers’ opinion of the proposals.
About 1500 farmers, with more than 2500 comments, made their views known to the steering group.
The report contains 27 recommendations that Barron says will help unlock the benefits the council can provide to shareholders.
He says the review shows the majority of Fonterra farmers place a high value on the council’s representation, monitoring, connection and guardianship functions, including wanting the council to help them feel connected to their co-op, but that they want greater visibility of councillors in their wards to hear their views.
A significant switch in focus highlighted by the review will see the council move towards a more proactive stance.
“We need to move past talking about what our concerns are and instead articulate more what our expectations are,” Barron said.
“Let’s have some discussions about what we expect and how they might be delivered.
“That’s going to be a key part of us all moving forward together.”
