The country's largest dairy exporter has welcomed the pending launch by the New Zealand Stock Exchange of a dairy futures market, saying it wants such a risk management tool.
Farming commentators are hailing Fonterra's raising of $271 million in new shareholder's capital as an achievement, given farmers' tight cash flow and not a sign the dairy giant needs to open its share base to general investors.
A third of Fonterra's 10,500 shareholders have subscribed for 60 million new shares in the co-operative, providing $271 million in new capital.
The calling-in of resource consent applications "makes sense" because the issue of proposed large-scale dairy farm development in the Omarama and Ohau area was too big for Environment Canterbury to handle properly, Labour's water quality spokesman Brendon Burns said yesterday.
World dairy markets will be studying closely the results of Fonterra's globalDairyTrade internet auction this morning, after speculation the strength of recovery in global dairy prices might not be sustainable.
The Government is seeking submissions on the soon-to-expire Dairy Industry Restructuring Act, which creates competition in the dairy industry.
Fonterra has been accused of anti-competitive behaviour, with critics claiming proposed changes allowing farmers to trade its shares between themselves will lock them into supplying the co-operative.
Fonterra has successfully manoeuvred through the first two stages of capital restructuring, with shareholders yesterday overwhelmingly supporting two of the three proposed changes.