Farmers want TAF answers
Fonterra chairman Sir Henry van der Heyden will not respond publicly to growing farmer demands for a second vote on the contentious proposal for share trading among farmers, despite the threat of an extraordinary shareholders meeting and a website launch.
Federated Farmers is the latest to call for another vote, citing ‘‘deep concern’’ about the unanswered issues around the trading among farmers (TAF) capital restructure proposal, which some farmers fear will lead to a loss of farmer control of New Zealand’s biggest company.
But van der Heyden refused to be drawn when questioned yesterday.
His response: ‘‘Fonterra directors will meet with Federated Farmers representatives in the near future to discuss the points they have raised in their letter. Board and management are keen to keep TAF discussions ‘in the family’ – farmer to farmer, not through the media.’’
The problem is, shareholders claim, the discussion is one-way – the board tells farmers what is good for them and brushes off questions.
One shareholder said there was a misinformation campaign.
Fonterra directors want to introduce farmer share trading, which would offer Nzx-listed investment units to the public, in November.
Despite unease in the 10,000strong shareholder base, and inconclusive meetings with farmers this year, directors are ploughing on with their plan.
Farmer trading ‘‘training’’ programmes are scheduled, the NZX has been contracted, and the Government is prepared to change legislation to enable TAF.
South Island farmer critics this month launched a website, ourco-op.co.nz.
Federated Farmers dairy chairman Willy Leferink added fuel to concerns this week in a strong letter to van der Heyden.
He called on him to explain the ‘‘ins and outs of TAF’’ and then to seek a second vote.
Farmers voted for the TAF concept nearly three years ago. But some have since become fearful it is a Trojan horse for a full sharemarket listing of the farmer-owned co-operative.
They are particularly concerned about the impact of a proposed Fonterra Shareholders Fund and have made at least two petitions to the board for a second vote.
Canterbury shareholder Leonie Guiney said Fonterra had been made aware there was enough voting grunt among unhappy South Island shareholders to force an extraordinary shareholders meeting. Another group was emerging to force a special meeting.