Prime Minister John Key (centre), Fonterra chairman-elect
John Wilson (left) and Fonterra chief executive Theo
Spierings toast the opening of the dairy co-operative's
Darfield milk powder plant. Photo from Fonterra.
Demand for units in the Fonterra Shareholder Fund surged
yesterday, with $133 million worth of trading in the three
hours following the launch of Trading Among Farmers.
After the ringing of a symbolic giant cow bell to mark the
launch on the NZX, units debuted at $6.66, up $1.16 on their
listing price of $5.50.
By 3.15pm, they were trading at $6.77 (up 23.09%), with 1042
trades of 19,975,188 units, valued at $133 million.
Trading closed last night at $6.85 after reaching a high of
$6.95 during the day and a low of $6.56.
About 30% of the available units traded yesterday with
interest regathering strength after the Australian market
opened. Brokers said the trading exceeded all expectations.
A special ceremony was held in Canterbury to mark both the
official launch of Trading Among Farmers (TAF) and to open
the co-operative's new $200 million milk powder plant at
Both those milestones symbolised the strong future for the
dairy co-operative, chairman-elect John Wilson said.
While Fonterra was a global company, its roots had "always
been firmly planted in rural New Zealand" which was why the
events were combined at Darfield, Mr Wilson said.
TAF provided Fonterra with a stable capital base and created
the conditions of confidence for it to invest in the most
productive areas to add value, grow its brands beyond
existing positions and compete strongly in the most rapidly
growing dairy markets in the world - Southeast Asia, the
Middle East and China.
"Today for the first time in Fonterra's history, farmer
shareholders are able to buy and sell shares among themselves
on the Fonterra Shareholders' Market," he said.
"At the same time, members of the public can now gain
exposure to a New Zealand success story and the world's
largest dairy processor by buying units in the Fonterra
A cow bell, crafted especially for the occasion, was used by
Southland farmer and Shareholders' Council councillor Philip
van der Bijl to ring in the launch of TAF at midday.
Debate previously raged over the controversial scheme,
particularly over future farmer control and ownership of
Fonterra, before the co-operative gaining a mandate in June
A final vote of 66.45% in favour of implementing the scheme
meant two out of every three votes supported the move in a
record voter turnout.
The offer of units in the Shareholders Fund consisted of a
broker firm offer (to New Zealand-resident clients of NZX
firms), an institutional offer (to institutional investors in
New Zealand, Australia and certain other countries) and a
stakeholder offer (to "Friends of Fonterra" in New Zealand
and Australia and to Australian supplying shareholders). A
total of 95,454,545 units were issued.
Shortly after the launch on the NZX, Prime Minister John Key
officially opened the milk powder plant.
Fonterra's chief executive Theo Spierings paid tribute to the
hard work of more than 1500 people who had built a
"world-class" dairy processing site from paddock to powder in
just 18 months. Since August, when the first bags of whole
milk powder rolled off the production line at the plant, more
than 30,000 metric tonnes of product has been produced,
destined for customers in China, Southeast Asia and the
About 2.4 million litres of milk were processed in a single
Work was now well advanced on building a second drier at the
site, which would be ready to process milk in August next
year, tripling the site's capacity.