animal welfare
fonterra shout
The New Zealand Companion Animal Conference crosses into farm territory. page 34
Pictures from the cooperative’s 10-year celebrations and chairman’s reflections. pages 10-11
Rural NEWS
closing date Ryegrass seed growers get the latest on this key management decision.
page 30
to all farmers, for all farmers
november 1, 2011: Issue 503
www.ruralnews.co.nz
TAF concern spreads SU DES H K I SSU N
SHAREHOLDER CONCERNS about Fonterra’s proposed share trading scheme have been confirmed in the North Island. A meeting of about 100 Bay of Plenty farmers last week backed a motion seeking an extraordinary meeting to discuss concerns about TAF (trading among farmers). Rural News attended the meeting, the first on such a scale north of Cook Strait. More are planned. The group’s reservations about TAF governance echo those voiced at meetings in Southland and Ashburton. At their core is the fear that transfer of share title to a custodian will cause a crack in Fonterra’s armour against outside investor control. Although the Bay of Plenty group is made up of mostly small-scale farmers who collectively supply no more than 1% of Fonterra’s milk, their decision is likely to spur farmer groups in Taranaki
to take a similar stand. Meeting organiser Donna Smit was pleased with the turnout. “We were certainly not expecting such good turnout. It goes to show the reservations farmers have on TAF,” she told Rural News. Smit has been told “pocket meetings” are being organised in Taranaki by concerned shareholders. Christchurch lawyer David Stock, who spoke at the meeting, says the motion for a special meeting will be used to “persuade” Fonterra chairman Henry van der Heyden and the board to change TAF. “The motion is just to show the
board farmers have the numbers to ask for a special meeting. We hope the board will understand and a final vote on TAF will be left to all shareholders.” Under the present plan, only a 50% vote by the Fonterra Shareholders Council is required to approve TAF, which was agreed in principle last year by Fonterra farmers. A Fonterra spokesman says board members and management will continue to meet with groups of farmers to discuss their concerns. But he ruled out a debate in the media. “We want to have these discussions face to face and we prefer not to be
debating it through the media.” The spokesman says 100% farmer control and ownership will always be non-negotiable. Yet a lot of water needs to go under the bridge to test that TAF meets the mandate farmers gave it last year, he says. “The co-op is taking a rigorous approach to satisfy itself the design of TAF meets all its objectives and preserves 100% farmer control and ownership. The board’s special due-diligence committee will look at TAF from every angle and we will only proceed with TAF when it is given a clean bill of health.”
going somewhere in no hurry
Ian Sadler, of Geraldine, for 50 years owned the Lanz Bulldog tractor he is seen here driving at a recent vintage machinery weekend at Hinds, Canterbury Full story next issue.
LAST WEEK’S gas leak, which crippled milk and meat plants and forced farmers to dump millions of litres of milk, is raising questions about processors’ contingency plans for such events. Federated Farmers Dairy chairman Willy Leferink wants Fonterra to mitigate the risk of solely relying on the ageing Maui pipeline. “We haven’t identified it as an Achilles heel yet, but I’m sure Fonterra management will look at alternatives. It’s not for me to speak on their behalf but I’m sure they are looking into it,” he told Rural News. The leak has caused one of the biggest disruptions to milk supply the dairy industry has seen. Late last week, Fonterra estimated 50 million litres of milk could not be picked up, forcing farmers to dump it into effluent ponds and on paddocks. When the crisis struck last Tuesday, 15 of Fonterra’s plants between Taupo and Northland were forced to close. Gas supply was restored to 12 plants, including the Kauri site – the only one in Northland – by late Wednesday. But the co-op was told to keep Te Rapa – one of its four ‘super’ sites – and Maungaturoto and Morrinsville, closed. to page 3
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to page 3
Back-up plan lessons from gas leak
www.inghamfeeds.co.nz
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