Trading debate means all informed

Richard Strowger.
Richard Strowger.
Debate over the controversial Trading Among Farmers scheme has to be a good thing, North Otago Federated Farmers president Richard Strowger says.

Fonterra shareholders' final vote on the scheme was only a month away, on June 25 and farmers needed to be fully informed, Mr Strowger said.

The scheme involves farmers buying and selling shares among themselves, through a market, rather than via the co-operative, and is due for launch in November.

Following Federated Farmers dairy chairman Willy Leferink's suggestion that Fonterra's international farming interests be spun off into a separately branded and listed company, providing a route for raising capital, Fonterra has attacked the rural lobby organisation for what it described as "ill-informed comments".

Chief executive Theo Spierings said it was about the third time Federated Farmers had issued media comment on the scheme and "got things wrong".

"Whether it's intentional or unintentional, it's irresponsible and stirring up emotions among our farmers and damaging the co-operative," he said.

In a statement, Mr Spierings said the scheme was about protecting Fonterra and preserving 100% farmer control and ownership, not raising capital.

Federated Farmers' "inaccurate comments" countered what he and chairman Sir Henry van der Heyden were trying to achieve - give farmers all the facts and a final vote on the scheme "so we can unify the co-operative".

It was important shareholders' voting decision was "based on the facts, not rhetoric", Mr Spierings said.

Mr Strowger said Mr Leferink was entitled to have his opinion and the issue had to be debated because, once the decision was made, it was too late to go back.

Federated Farmers' role was all about giving information to farmers. Farmers were not silly and would make up their own minds accordingly, he said.

Farmers he had talked to were divided on the issue - "they seem to be in one clear camp or the other" - but now, more than ever, with the failure of New Zealand Dairies, they wanted to make sure of security of supply.

Receivers were last week appointed to Russian-owned New Zealand Dairies. The Studholme dairy plant, near Waimate, had previously been on the market.

sally.rae@odt.co.nz

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