7 Sep 2011

Shareholders say farmers must retain control of Fonterra

6:50 pm on 7 September 2011

The Fonterra Shareholders' Council is reinforcing the message that introducing share trading among farmers will not compromise their control of the co-operative.

Fonterra is proposing to introduce the share trading arrangement next year, once dairy industry legislation is amended to allow it.

Some farmers have raised concerns about possible loss of control to outside investors, who will be able to buy into a shareholders' fund to be established as part of the scheme.

The shareholders' council chair Simon Couper says the Fonterra Board still has to release final details of how trading among farmers will work.

But he says 100% farmer ownership and control is non-negotiable.

He says the council also has a comprehensive review process underway and it will not approve anything that does not guarantee farmers retaining full control.