Flatlining milk production makes Fonterra rethink ownership model
Shrinking milk supply has dairy giant pondering its best options for survival.
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Shrinking milk supply has dairy giant pondering its best options for survival.
Federated Farmers dairy industry group chair Wayne Langford said it was "the beginning of a fairly long and extensive review" for Fonterra owners. But it was good to see the company front-footing issues like milk supply and ownership, "as well future farm succession and young farmers coming into the co-op". Supplied Fonterra is considering a radical revamp of its capital structure which would keep farmers in control. Troubled by forecasts of a stagnant or falling milk supply, the board’s preferred option is either to buy back and close, or cap, the NZX-listed Shareholder Fund. Fonterra ...
Proposals expected to address milk supply loss and high cost of entry.
Fonterra unveils new capital structure options, shareholders' fund could go 5 May, 2021 08:43 PM 6 minutes to read Fonterra has announced a raft of changes to its capital structure. Photo / NZ Herald Fonterra directors are proposing an easier entry for farmers to the big dairy cooperative and either axing or capping through a buy-back the listed Fonterra Shareholders' Fund to protect farmer ownership and control. This is the preference of the board of New Zealand's biggest company after a major review of its capital structure. And in what directors agree could come as a surprise, the size of ...
Press Release – Fonterra Today Fonterra is starting a consultation process to seek farmer feedback on potential options to change its capital structure that could give farmers greater financial flexibility. To allow its farmers to have open conversations and consider all options … Today Fonterra is starting a consultation process to seek farmer feedback on potential options to change its capital structure that could give farmers greater financial flexibility. To allow its farmers to have open conversations and consider all options during consultation, the Co-operative is temporarily ca...