Fonterra was established in October 2001 following the merger of the country’s two largest dairy co-operatives, New Zealand Dairy Group and Kiwi Cooperative Dairies, with the New Zealand Dairy Board. In New Zealand, as in most Western countries, dairy co-operatives have long been dairy farm project proposal pdf main organisational structure in the industry.
The first dairy co-operative was established in Otago in 1871. New Zealand domestic and export dairy industry. Fonterra, preferring to remain independent. It also operates a fast-moving consumer goods business for dairy products, Fonterra Brands. Fonterra has a number of subsidiaries and joint-venture companies operating in markets around the world. 1 billion of Fonterra’s revenue was from Australian sales, which was 14 per cent of the dairy products it sells around the world. Parmalat Australia in December 2015.
Please update this article to reflect recent events or newly available information. The aim was to give more access to funds for global growth. The board responded in 2008 by shelving the November 2007 proposal and continuing consultation and discussion with farmer shareholders. In September 2009, the board announced a three-step process to revamp Fonterra’s capital structure.
A key goal of the capital structure changes was to stop large amounts of money washing in and out of Fonterra’s balance sheet each year as milk production fluctuates. If their milk production dropped in any season, they could redeem shares back to the co-operative, which was required to buy the shares back off them. Consequently, Fonterra faced the risk of losing large amounts of share capital through redemptions during times of declining milk production. 742 million of share capital to farmers via redemptions. The capital structure changes also sought to provide greater incentives for farmers to increase their investment in Fonterra shares, helping ensure Fonterra has sufficient share capital to fund profitable business opportunities and drive a higher payout to dairy farmers. The first two steps of capital structure change received good support from farmer shareholders at Fonterra’s annual meeting in November 2009.
There were also enhanced incentives for farmers to hold shares even if their production falls. The rules about the pricing of end of season share transactions were also tidied up. The second step changed the way Fonterra shares were valued to reflect that share ownership is restricted to farmers only. Previously, Fonterra shares were valued on a theoretical basis as if the shares were freely traded like a public share. The third step, titled “Trading Among Farmers”, involves more far-reaching change to Fonterra’s capital structure. The co-operative would no longer be obliged to issue or redeem shares at a price established via an independent valuation process. Instead, farmers would buy or sell shares among themselves at market prices through a farmer-only share trading market.
This would have the effect of making Fonterra shares permanent capital, providing the co-operative with more confidence to invest in long-term projects without fear that some of its share capital might be needed to fund redemptions in future years. As part of the changes, farmers would have greater flexibility with their Fonterra shareholding. The fund would raise the money it needed to pay farmer shareholders by selling investment units to investors. Fonterra would require the fund to target “friendly” investors such as sharemilkers, retired farmers and offshore Fonterra suppliers, although the public and institutions would also be able to participate. D, Human Resources, Strategy and Information Services.
RD1 – a wholly owned rural retail supplier. RD1 was formed at the end of 2001 through the merger of RD1. Country Agri-centres, Fonterra’s two rural supply companies. 900 million, RD1 is New Zealand’s largest retailer of agricultural supplies to dairy farmers.