Farmers to trade shares with Fonterra shareholders

Fonterra shareholders have overwhelmingly voted in favour of changes to allow share trading amount farmers.

The resolution – Trading Among Farmers – received a 89.85 per cent vote in support at Fonterra’s Special meeting.

“It is great to see farmers taking part and having their say. Their participation is the strongest since Fonterra was formed. It signals a clear mandate and shows that the unity and spirit of our Co-op is alive and well,” Fonterra chairman Henry van der Heyden said.

He also said Trading Among Farmers, where farmers buy and sell shares from each other through a market, rather than the Co-operative, would remove redemption risk, such as the need for Fonterra to pay cash out to those farmers leaving or reducing milk supply.

“Trading Among Farmers will ensure Fonterra remains farmer controlled and owned, and that our loyal shareholders have an incentive to hold Fonterra shares and put more equity into our Co-op,” Henry said.

According to the company, work would now begin on developing the detail of Trading Among Farmers through to implementation, expected to be completed in 2011/12.



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