It’s recommending that farmers should only need one share for every four kilogram of milksolids supplied, rather than the one-to-one ratio that’s required at the moment.
It also thinks the shareholders fund should either be capped or scrapped.
Fonterra’s last big capital rethink came at a time when milk supply was growing, but competition and regulation will mean a static or shrinking pool in the future.
So the board wants to tailor things to fit this new reality.
No doubt there’ll be a lot of discussion between farmers about the best way forward for their co-operative.
The good thing here is that farmers will be firmly in control of their own destiny.
Bryan Gibson
Fonterra caps shareholders’ fund – but axe looms
Fonterra is kicking off a consultation process that could slash the number of shares that farmers need to hold and cap or shut down the Fonterra Shareholders’ Fund.
Wool assurance programme launched
A new national standard for wool will support increased differentiation and demand for New Zealand wool in the global marketplace.
SWAG looks to the future
The Government has awarded the Strong Wool Action Group (SWAG) $2.8 million in support of its work to establish initiatives that will lift the industry out of the doldrums.
‘Kombucha effluent’ research under way
Usually the preferred beverage for urban hipsters, kombucha may have a new use on the farm, with AgResearch scientists discovering its fermentable properties lend themselves well to making dairy effluent less toxic, if not drinkable.
Covid brings a career rollercoaster
Amy Luckhurst was on her OE operating rollercoasters in England when the covid-19 pandemic struck. Never in her wildest dreams did she see herself working on a dairy farm back home in New Zealand.
