Farmers welcome discussions
Released 07 Apr 2010
Federated Farmers welcomes Fonterra's discussion document that was released today and commends the idea of an internal farmer sharemarket.
"The document suggests setting up a registered market where Fonterra shareholders can buy and sell their shares at that day's trading price," says Lachlan McKenzie, Federated Farmers Dairy chairperson.
"Currently shares are sold and brought by Fonterra at a price fixed by a valuer.
"We're backing the draft proposal going out for consultation, we think it's very flexible and has something for everyone.
"For those farmers who are a bit tight on cash, there's a possibility to borrow money from the shareholders fund to buy shares.
"The time frame is very flexible and allows farmers three years to buy or sell their shares.
"Loyal, existing Fonterra shareholders will definitely not fall by the way-side. They will be able to invest more money in the co-operative shares, with the opportunity to buy shares twice the value of their actual milk production.
"Those farmers thinking about retiring and sharemilkers are also not forgotten. They can invest in the dividend streams of Fonterra by buying units in the shareholder fund.
"Federated Farmers is very impressed by this proposal and looks forward to more detailed discussions on it," Mr McKenzie concluded.
For further comment, please contact:
Federated Farmers Dairy chairperson, Lachlan McKenzie, 07 332 3440, 021 382 442
