5 May 2005
Fonterra Shareholders Show Resolve
Dairy Farmers of New Zealand Chairman Kevin Wooding has welcomed the results of a shareholder poll which will allow
Fonterra Co-operative Group to modify its capital structure.
"This is a decisive vote for change. Shareholders have spent nearly a year studying the detail and listening to the
reasoning, attended many public meetings, engaged in public debate, and deliberated with neighbours.
"Armed with a solid understanding of what the proposed changes mean, farmers have voted with a resolve that will ensure
without doubt the implementation of these important resolutions.
Fonterra's 12,000 shareholders today gave their board a mandate to replace peak notes and share redemption rights, and
opens the door to contract milk suppliers. These changes were passed after a robust consultative process that led to
good proposals before shareholders.
"This process illustrates that a co-operative structure, when managed well to achieve the best outcomes for shareholders
and other stakeholders, can work effectively.
"I would hope that Fonterra has learned a lot from this whole process, one which will no doubt be repeated in future as
further modifications are seen necessary.
"Fonterra operates in a dynamic and competitive global market, so it must be encouraged to put forward further changes
that are necessary to ensure it remains a strong co-operative with a solid future."
Dairy Farmers of New Zealand is the dairy industry group of Federated Farmers of New Zealand (Inc).
ENDS