Fonterra's restructuring plan will create larger problem

Fonterra's restructuring plan will create larger problem
Fonterra chair Peter McBride was less friendly towards fund investors in May. (Image: Supplied)
Jenny Ruth
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...

More Opinion

The big banks risk being disrupted by Big Tech
Opinion

Peter Griffin: The big banks risk being disrupted by Big Tech

If we let innovation continue, even vastly profitable banks face an uncertain future.

Peter Griffin 28 Mar 2024
BNZ KiwiSaver manager do-over heralds FirstCape arrival
Opinion

David Chaplin: BNZ KiwiSaver manager do-over heralds FirstCape arrival

Unlike banks, broker-founded advisory firms haven’t done much with KiwiSaver; no need.

David Chaplin 27 Mar 2024