100% farmer control of Fonterra not negotiable – Couper

Following extensive coverage and discussion in some quarters that Trading Among Farmers (TAF) presents a threat to farmer ownership and control of the Fonterra co-operative, Fonterra Shareholders’ Council Chair Simon Couper has sent a message to shareholders and board alike stating that when it comes to TAF it is 100% shareholder ownership and control of the co-op or nothing.

“Farmer ownership and control of our co-operative is essential to our core beliefs. When the Shareholders’ Council is reviewing the structure and implications of TAF, retaining 100% ownership and control is non-negotiable, said Couper.

“If there is any real risk that 100% ownership and control is not retained by our co-op, Council will not vote to support moving to TAF.”

Couper also sought to address the issues around the role of the custodian which has been the subject of much discussion.

“While some of the detail around TAF may have evolved with respect to the role of the custodian, the intent of retaining 100% farmer ownership and control has not,” said Couper.

The Shareholders’ fund, the size of which is unconfirmed at this point, was also part of the structure voted on yet has been cause for conjecture in some circles.

“Ultimately the Fonterra Board has the obligation and responsibility to prove to the Council and shareholders that the controls and protections for 100% farmer ownership and control will be embedded in the proposed structure; this includes the role of the custodian and the fund.”

Couper said that while they wait for the board to release the final details the Shareholders’ Council has a comprehensive review process in place to evaluate TAF.

“We have retained a lawyer with extensive senior corporate law and Government advisory experience who is constantly reviewing and questioning the provisions contained within the structure.

“Also, DLA Phillips Fox who are specialist regulation and corporate lawyers and who have been involved in the TAF process on behalf of shareholders from the outset, will carry out a complete evaluation of the final TAF document and the controls within it before Council will look to vote on it.

“From the Council’s point of view it is 100% farmer ownership and control of the co-operative or nothing - if our review process shows that this most key aspect of TAF is not guaranteed then TAF will not go ahead.”