Flexible Shareholding

Farmer  shareholders have voted 85.16% in favour of the Flexible Shareholding structure.
Fonterra Capital Structure Farmer

“I would like to thank everyone who voted and the thousands of farmers who gave us their time and ideas during the consultation period, which helped us to shape the proposal into the Flexible Shareholding structure that received such strong support.” Peter McBride, Fonterra Chairman   

With a clear farmer mandate for change, Fonterra will continue working with the Government on how this can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2001.  

The Heart of our Discussion

KEY FEATURES OF FLEXIBLE SHAREHOLDING
  • Increased Flexibility

  • Capped Fund

  • Future Owners

  • Extended Exits

  • Easing Entry

Giving all supplying farmer owners more flexibility in the number of shares they hold.

Capping the Fonterra Shareholders' Fund (Fund) and moving to a farmer-only market.

Creating a more inclusive pathway to becoming a Co-op member where sharemilkers, contract milkers and farm lessors could buy and sell shares as associated farmer owners.

Providing greater choice about how long farmer owners retain an investment in the Co-op after they cease supply.

Easing entry provisions to allow new entrants (or existing supplying farmer owners who have a material increase in milk supply) six seasons to achieve their 33% Minimum Holding.

Where to from here?

  • 6

    May 2021

    6

    May 2021

    Capital Structure consultation announced

  • 19

    Jul 2021

    19

    Jul 2021

    Initial findings released

  • 23

    Sep 2021

    23

    Sep 2021

    Revised Flexible Shareholding proposal announced

  • 23

    Sep 2021

    23

    Sep 2021

    Long-term Strategy announced

  • 9

    Nov 2021

    9

    Nov 2021

    Flexible Shareholding proposal to be put to shareholder vote

  • 17

    Nov 2021

    17

    Nov 2021

    Notice of Meeting released to NZX

  • 18

    Nov 2021

    18

    Nov 2021

    Online Voting Opens

  • 7

    Dec 2021

    7

    Dec 2021

    1.00PM CUT-OFF TIME FOR ALL ONLINE, POSTAL AND PROXY VOTES

  • 9

    Dec 2021

    9

    Dec 2021

    Special Meeting held

    The Flexible Shareholding structure received a strong mandate with [85.16%] of total farmer votes cast in support of the recommendation and [82.65%] participation based on milk solids voted. 

    Today:

    Fonterra is continuing to work with the Government on how the Flexible Shareholding structure can be given effect under the Dairy Industry Restructuring Act, the legislation that enabled the formation of Fonterra back in 2021.

    The Flexible Shareholding structure will come into effect once the Board is satisfied that any steps necessary for implementation have been (or will be) completed. The Co-operative is aiming to implement the changes as soon as possible from the beginning of next season.

    Share compliance obligations will remain on hold until at least six months after the new structure is effective. The cap on the Fonterra Shareholders’ Fund will remain in place as this cap is a feature of the Flexible Shareholding structure.

  • 3

    Jun 2022

    3

    Jun 2022

    RESPONSE TO GOVERNMENT CALL FOR SUBMISSIONS ON AMENDMENTS TO THE DAIRY INDUSTRY RESTRUCTURING ACT

Fonterra DIRA submission to the Government

As part of the legislative process to enable Fonterra’s Flexible Shareholding, Fonterra has responded to the Government call for submissions on amendments to the Dairy Industry Restructuring Act (DIRA).

Fonterra does not oppose the majority of the Government’s amendments. At the heart of our submission is integrity of the Fonterra Farmgate Milk Price and, through the Select Committee process, Fonterra will continue to advocate strongly to ensure the best interests of all New Zealand dairy farmers are considered.

Council DIRA submission to the Government

In response to the Government call for submissions on amendments to the Dairy Industry Restructuring Act (DIRA), Fonterra Co-operative Council has submitted on behalf of Co-operative members. The Council submission advocates for Co-op farmers and was developed from farmer feedback, which included small group and individual farmer discussions with Councillors. 

The Council submission is separate to and independent of the Fonterra submission.

‘Ask me anything’ webinar with Chairman Peter McBride

Chairman Peter McBride answers farmers capital structure questions in an “Ask me anything” online webinar. 

Capital structure discussion with Peter McBride and James Barron

Fonterra Chairman Peter McBride and Co-operative Council James Barron talk about the Flexible Shareholding structure and the changes that have been made to the proposal based on your feedback since September, before they answer Q&A.

Farmer panel discussion

Fonterra Co-operative Council Chairman James Barron is joined by Fonterra farmers, Greg Gent, Charles Whiting, Adrian Ball and Richard Stalker, who share their views on a range of topics, including the importance of the Co-operative model and other aspects of the revised capital structure proposal.

The value of a strong co-op

Fonterra Co-operative Council Chairman James Barron and farmers Carlos Cuadrado, Colin Glass, Gaynor Tierney and Mark Cressey look at why it’s so important to have a strong farmer-owned Co-operative in our New Zealand dairy industry.

The panellists share personal experiences to help show the difference between New Zealand's dairy industry compared to Australia, Argentina, Ireland and the UK, as well as interesting insights into what benefits farmer-owned co-operatives bring to farmers.

Contact Us

 

Feel free to contact your Area Manager if you have any questions around what the  Flexible Shareholding  means for you. 

Stay up to date with the latest developments by re-visiting this webpage for updates.