Some Fonterra farmer shareholders in Canterbury have organised a meeting in Ashburton on Thursday night to ask questions about an aspect of the co-operative's trading-among-farmers plan that has them worried.
Farmers strongly backed the proposal that would allow them to trade Fonterra shares with each other. Lately, however, some have raised concerns about the operation of a shareholders' fund that outside investors could tap into.
Farmers would be able to draw on the fund by selling it the dividend income and any change in value from their shares. Non-shareholders would be able to invest in that income source by buying units in the fund.
Fonterra has assured farmers they would retain full ownership and voting rights of any shares placed in the fund.
Doubts raised by presentation
But a Fairlie dairy farmer and Fonterra supplier, Leonie Guiney, who's chairing the Ashburton meeting, says more recent information from Fonterra has raised some doubts about that.
"A recent presentation from Fonterra shows," she says, "that in fact they're now suggesting the shares would be held not by the dairy farmer any more but by a custodian, so the legal title of the shares would be transferred to a custodian and vouchers issued back to farmers."
Ms Guiney says the concerned farmers want answers before the trading-among-farmers plan takes effect.
The meeting - at the Ashburton Hotel at 7pm - will hear from a lawyer who specialises in co-operatives, David Stock.
