Friday, April 26, 2024

Farmers back Fonterra

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Last week Farmers Weekly gathered the thoughts of southern dairy farmers as they contemplated a winter facing low payouts while coping with the drought hangover. This week Neal Wallace and Hugh Stringleman spoke to some of their North Island counterparts to see what they are thinking. It seems they staunchly back Fonterra but that doesn’t mean they don’t have some advice on how it could improve.
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When will it end?

Te Awamutu dairy farmer Brad Eyre remains convinced Fonterra is the right vehicle for the industry. It has just hit a rough patch.

Eyre said Fonterra had to do better with communication to shareholders and stop having its dirty laundry aired in public.

“The same goes with the low dividend – are the businesses returning enough to make people want to invest?”

Vollebregt said he was a loyal Fonterra supplier and he needed to be – Wairarapa had no processing options and the strength of Fonterra’s payout determined all the other payouts.

Vollebregt believed the flow of information from Fonterra had increased when compared to before Trading Among Farmers because of the disclosure requirements of the share market.

He also thought “shed” meetings with directors and management were informative.

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