MANAGEMENT
MACHINERY
Internet future for family-run flower farm. PAGE 39
Swapping downtime for snow time. PAGE 49
RURALNEWS
NEWS Agriculture won’t be joining Emmissions Trading Scheme – for now.
PAGE 14
TO ALL FARMERS, FOR ALL FARMERS
OCTOBER 18, 2016: ISSUE 617
www.ruralnews.co.nz
Changes get the nod SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA CHAIRMAN John Wilson says the co-op has benefited greatly from its governance structure review. “We have reminded ourselves of the unique and very important governance structure that we have and the different skills and capabilities we need between those who govern and those who represent,” Wilson told Rural News. Wilson was speaking after 85.96% Fonterra farmers voted in favour of a new governance structure. Under the new structure, Fonterra’s board will reduce by two to 11. Farmers also voted 88% in favour of changing the representation role of the Shareholders Council, which will now refocus on its primary role to challenge the board on matters of shareholder interest. Wilson says it’s a great result and
thanked farmers for taking part in “a thorough and thoughtful process”. Fonterra started the governance review process in 2012 as part of a three-pronged strategy; changes to its capital structure, management and governance and representation. “You don’t do this the next day; you do it over time,” says Wilson. “I have a huge respect for our farmers for getting involved at a time when it is so challenging on farm. For those family farming businesses under financial pressure with low milk price; to be involved in discussions takes effort so I really respect that.”
Wilson says feedback from farmers is that they have appreciated the review process and they value the discussion on governance. The co-op held over 600 farmer meetings as part of the review. The final vote reflected shareholder sentiment that the recommendations were a significant improvement and it was time to move the cooperative forward, adds Wilson. “The global market place; where our consumers and customers’ demands are changing by the day; routes and global trade agenda changing by the day.
“We need to be a very fast moving co-op and our ability to have these conversations (on governance) allows us to stay ahead of competition.” Wilson noted that cooperatives, by their nature, need consensus on the important decisions. “That is as it should be and we have agreed on the final recommendations after a very constructive eight months of discussions and refinements. “It is a clear signal from our shareholder base that it is time to push on so the co-op can focus on our business priorities.” • Pole position – p5
TO BE SURE John Joyce is a born-and-bred Irish hill country farmer who lives in a stunning thatched cottage on the road to Maam Cross, northwest of Galway City. He runs 200 mountain ewes and has farmed in the district all his life. The dry stone walls keep his sheep contained, and he also runs some livestock high on the mountains during summer. Joyce, like many Irish farmers and his New Zealand counterparts, is feeling the impact of poor sheep prices, mainly due to the uncertainty over Brexit. See more page 10
DOLLAR KILLING LAMB PAM TIPA pamelat@ruralnews.co.nz
THE NEW Zealand dollar will be the big worry for beef and lamb prices in the next year, says ANZCO chairman Sir Graeme Harrison. “The big worry for lamb is not the price of retail in the UK, because that is holding up; it is the issue of the exchange rate. The NZ dollar has appreciated so much,” Harrison told Rural News. “The problem really is sterling, which has depreciated so much against all major currencies and we are caught up in all that. “That’s a worry,” Harrison says. “On the beef scene, while obviously we have enjoyed very good times, it will be difficult to keep prices up where they are. But a lot depends again on demand in Asia and where the exchange rate finishes. I would say the exchange rate has got a huge influence on farmer incomes this year.” Harrison says it has always been a big factor, “but it is particularly big at the moment”. “When dairy prices have been down in the past the New Zealand dollar has gone down – and it didn’t this time.” The dollar is well ahead of where it was last year, “a concern for NZ”. He doesn’t think the falling interest rates will have a big influence. • More on lamb - p4
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