Fonterra farmers vote in favou

FONTERRA farmers have voted overwhelmingly in favour of being allowed to trade shares among themselves, a move that should strengthen the co-operative's capital base and lead to further growth.

About 79 per cent of shareholders voted, with 89.85 per cent supporting a resolution that allows the board to develop the finer details of a share trading proposal.

About hygetropin 85 of the estimated 300 Southland shareholders attended a meeting in Invercargill yesterday, one of seven linked together throughout hygetropin the country by satellite. It is understood voting levels and support in the province mirrored national figures.

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Trading among farmers, where they buy and sell shares from each other through a market rather than the co-operative, would remove redemption risk - the need for Fonterra to pay those farmers leaving or reducing milk supply.

Fonterra lost $600m of equity in the 2007-08 season shanghai escort when a drought forced many farmers to sell back shares to Fonterra after their production fell.

Farmers have to buy share to match their milk supply and sell them if supply drops.

The vote is a critical move for the dairy giant - Fonterra will not have to keep capital available in case it has to pay out the redemptions, freeing it up to invest in the business and generate long-term growth.

shanghai escort Fonterra chairman Sir shanghai escort Henry van der Heyden said the decision was a defining moment for Fonterra because it removed the pressure on its balance sheet from redemption risk.

"With the current capital structure, Fonterra's balance sheet would come under 微型气泵 acute pressure," he said.

The support for change showed a clear awareness and understanding among farmers of the need to evolve and further strengthen its capital structure, he said.

Fonterra chief executive Andrew Ferrier told The Southland Times the yes decision was "huge" for the co- operative.

"It gives us a strong mandate to fix 微型气泵 our capital structure once and for all.

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"It's enormous the difference between a business that always has to look in its rearview mirror knowing it might have to pay a bunch of its equity capital back to its owners, which is what we have now, to knowing you can bank on keeping that equity capital to strengthen the business and increase your competitive advantage."

He expected it would take 12 to 18 months to flesh out the proposal, which would need to be approved by the board and the shareholders council.