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 shareholders.

We would look to introduce additional eligibility guidelines to set out criteria such as who would qualify as an associated shareholder. 

The guiding principle would be that, because associated shareholders are not the supplier of milk to our Co-op under our Terms of Supply, they would only be eligible to own dry shares allocated to them by their supplying shareholder. These shares would not carry any votes given they would not be backed by milk supply.

Why we need to change
 

You’ve told us that providing pathways for future owners to become part of our Co-op is important to recognising the critical role they play in our industry.

Enabling farmers who are associated with a supplying shareholder to hold shares in our Co-op should help support buy-side demand and liquidity in the farmer-only market.

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.

Why we need to change

Farmers leave for different reasons, but one of the most influential ones is the level of compulsory investment that's required to be part of our Co-op....

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

Why we need to change

Providing more flexibility needs to be combined with making changes to the Fund in order to protect farmer ownership and control...

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.

Why we need to change

You've told us that providing pathways for future owners to become part of our Co-op is important to recognising the critical role they play in our industry...

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

Why we need to change

We're aiming to recognise the impact on our existing farmer owners in moving to a restricted market by giving them a longer timeframe to sell...

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.

Why we need to change

This would provide new suppliers with a similar timeframe to share-up to the current Share-Up Over Time contracts...