10 December 2021

1 minute read

Oceania

Fonterra said on Thursday its new capital structure has been approved by its farmer shareholders, reported Reuters.

The new capital structure will allow new farmers to enter the co-operative more easily as part of the strategy to claw back domestic market share.

The New Zealand-based dairy exporter, owned by its 10,000 farmer shareholders, said 85.2% of the votes cast came in favour of the proposal which will limit non-farmer investment in the Fonterra Shareholders Fund to protect farmer ownership and control.

"Changing our capital structure is the most important decision we as farmers have made in almost a decade," Chairman Peter McBride said in a statement.

It had first proposed the new shareholding structure in May, and had outlined a range of changes including reducing the minimum supply requirement for farmer owners to gain entry into the co-operative.

The company said it was working with the government for the restructure, and aims to implement it as soon as possible from the beginning of next season.

The current cap on the Fonterra Shareholders Fund will remain as a part of the new shareholding structure, Fonterra said.

Source: Reuters