Farmers to discuss the way forward

A review  of Beef + Lamb New Zealand's constitution will be discussed at a series of meetings throughout the South this month.

Two of the main topics to be covered will be Beef + Lamb's proposal for a new approach to market development, and a review of the organisation's constitution.

Probably the most significant aspect of the review was whether farmers wanted to retain the two industry directorships on the board, which were nominated by the Meat Industry Association.

Those positions are at present held by Anzco Foods managing director Mark Clarkson, and Affco New Zealand chairman Sam Lewis.

There was provision to appoint an additional independent director, although that had never been used.

The pros and cons for retaining the status quo or changing the governance structure were listed in information sent recently to farmers.

The two industry-nominated directors brought insight of issues beyond the farm gate affecting the red meat sector, strengthening the governance decisions made.

Beef + Lamb would struggle to find that expertise outside the pool of New Zealand processors and exporters.

They helped develop greater understanding of processor issues by farmer directors and gained understanding of farming challenges, which they conveyed to the processing sector.

But there was also a perception among some farmers that the industry-nominated directors put processor interests ahead of farmer interests.

Following a review, Beef + Lamb proposed a new approach to market development that would result in activity shifting from market maintenance in traditional markets to targeting new segments in new and traditional markets.

The annual consultation meetings will also consider Beef + Lamb's 2016-17 budget and applications to the New Zealand Meat Board for funding from capital.

Meetings will be held in Gore and Mossburn on August 19, Winton and Balclutha on August 24 and Palmerston on August 29.

The Fonterra Shareholders' Council is poised for a refreshed mandate with clearer guidelines on how it interacts with the milk processor.

The council and Fonterra Co-operative Group are seeking feedback from farmers on a series of proposals to update the group's governance to make the council's role clearer, explain how it works with Fonterra's board and management, and improve communication with farmer shareholders.

Farmers are expected to vote on any changes to the council's governance at a special meeting in mid-October.

Fonterra planned to change its constitution and create a new system to elect directors while slimming down the size of the board after reviewing its governance arrangements.

The proposals fell short of the required 75% support at a special meeting in June, and Fonterra said it would tweak its proposals with a view to having a revised proposition for farmers before the end of the year. - Additional reporting BusinessDesk

Add a Comment