Council’s role is to support shareholders’ democratic control of Fonterra and to actively represent and seek to protect Co-op members’ interests as owners, investors, suppliers and members of the Fonterra co-operative community.
Council’s vision is that through effective representation Fonterra farmers feel heard, valued and connected to their Co-operative and have confidence in its enduring success.
One Councillor is elected from each of 25 wards throughout New Zealand and Council may appoint up to three additional Councillors to fill diversity gaps around the Council table.
Council's functions
The role of the Council is fulfilled through key functions, which are set out in clause 16 of the Fonterra Constitution. These functions include:
Connection
- Developing a comprehensive understanding of Co-op members’ interests, needs, views and expectations and communicating them to the Fonterra Board, and
- Fostering members’ engagement with their Co-operative.
Accountability
- Ensuring Co-op members are fully informed by Fonterra about their Co-operative’s performance and strategy, and
- Holding the Board to account on behalf of Co-op members, by seeking Board explanation of and responsibility for Fonterra’s strategy and performance.
Guardianship
- With the Board, acting as joint guardian of Fonterra’s Co-operative Philosophy, as expressed in the Co-operative Principles, Purpose Statement and Values
- Consulting with the Board and Management on decisions which have the potential to affect members’ interests in their Co-operative
- Advocating on members’ collective behalf on matters relating directly to their interests in the Co-operative and, where appropriate, on matters relating to the dairy industry
- Managing the Director, Directors’ Remuneration Committee and Fonterra Farmer Custodian Trust elections, and
- Making constitutional appointments, including an independent Milk Commissioner and two appointments to the Fonterra Milk Price Panel.
How the Council operates
- Council meets four times a year in person, and online as required, to conduct business and receive updates on Co-operative matters from members of the Board and Management.
- Council’s annual work programme is determined by its core functions set out in the Fonterra Constitution and by topical issues of importance for Fonterra Co-op members.
- Council has representatives on the Governance Development Committee and four Councillors attend meetings of the Board’s Co-operative Relations Committee.
- Council is supported by an executive team based in Auckland, New Zealand.
Related documents
Independent report on the divestment commissioned by the Co-operative Council
Co-operative Councillors
Currently there are 27 Councillors, comprising 25 Councillors elected by farmers on a ward basis and two additional Councillors appointed by Council to fill diversity gaps: