Fonterra's restructuring plan will create larger problem

Fonterra chair Peter McBride was less friendly towards fund investors in May. (Image: Supplied)

Mon, 18 Oct 2021

Up until now, I've mostly looked at Fonterra's capital restructuring plans from the point of view of the outside investors in the Fonterra Shareholders Fund.But the farmers who own the shares are in a difficult position as well.Until now, farmers have had to hold one Fonterra share for every kilo of milk solids they produced in a season, but Fonterra is proposing to change this to one share for every three kilos produced.It wants to reduce the capital costs of new farmers joining the co-operative, as well as make it cheaper for former F...

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