The Fonterra Shareholders' Council is confident a letter sent to Fonterra Farmers addresses two major concerns held by worried shareholders.

The two most critical concerns for farmers are protecting 100 per cent farmer control and ownership and the integrity of the farm-gate milk price.

Council chair Ian Brown says the issues raised are the same issues that have been grappled with for the past two years through the council's due diligence process, involving deliberations on the pre-conditions and discussions with the co-operative's board.

'The council and the board have been united in their individual efforts to ensure that 100% farmer shareholder control and ownership, and the integrity of the farm-gate milk price were not compromised in any way,” says Ian.

'Some shareholders are anxious about the size of the Fonterra Shareholders' Fund, and the risk of influence by investors.”
He says the special resolution will be voted on to address these concerns.

'It's an important pillar in 100 per cent control and ownership especially with the added reassurance of a formal monitoring role for the shareholders' council, and a clear risk management policy.

'The final form of this policy gives the council the right to closely monitor the size of the fund and initiate action if it moves towards various thresholds.

'The council has also asked for our membership of the Milk Price Panel to be enshrined in the constitution – and that's also included in the special resolution.”

In the heat of debate about TAF, it was easy to lose sight of the constitutional protections shielding 100 per cent farmer control and ownership and the integrity of the farm-gate milk price, says Ian.

'But the constitution always puts farmers firmly in control when it comes to decisions about our co-op's future.

'In the end it comes down to two fundamental points: 5 per cent of the milk solids can always call a special meeting, if shareholders believe the co-operative is being threatened.”
Ian says the shareholders' council also has the ability to slam on the brakes.

'We are the guardians of the co-operative philosophy and 75 per cent of council can call a special meeting if we think this philosophy is being threatened. These are the ultimate protections.

'We encourage all Fonterra shareholders to attend the farmer meetings taking place through to June 13 – ask your questions ahead of the June 25 special meeting so you can exercise your vote with confidence.”