Agriculture Minister David Carter has signalled that Fonterra's plans for trading among farmers could be delayed if problems develop during discussions to change legislation permitting it.In Parliament today, Mr Carter said Fonterra was aiming to launch i
Agriculture Minister David Carter has signalled that Fonterra’s plans for trading among farmers could be delayed if problems develop during discussions to change legislation permitting it.
In Parliament today, Mr Carter said Fonterra was aiming to launch its new capital structure by November next year.
He said the government was working hard to ensure a new regulatory regime could be developed and implemented in time.
“However, it is important to note that the November 2011 timeframe is very ambitious. Any slippage in the joint process will mean that the timetable will be hard to meet,” he said.
The Ministry of Agriculture and Forestry is working with the dairy giant as it develops the detail of the final stages of its capital restructuring plan that would create an internal “sharemarket” for the 10,500 supplier owners of the co-operative.
Mr Carter said the cooperation between MAF and Fonterra was necessary to ensure the government’s public policy requirements were addressed and that officials were in a position to design and implement an appropriate regulatory regime.
Trading among farmers is the third stage of its restructuring process that began last year when supplying farmers agreed to strengthen the share structure, allowing them to hold shares up to 120% of production, and a new share value reflecting that ownership is restricted to farmers only.
The third stage, agreed to by farmers this year, creates a system where farmers buy and sell shares from each other rather than from the company. It’s this stage that requires legislative tweaks and the co-operation of both MAF and the government.
