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Fonterra Suppliers: Make Your Vote Count

Fonterra suppliers must vote in the upcoming milk pricing proposal, says Dairy Farmers of New Zealand (DFNZ) Chair Kevin Wooding .

The milk pricing proposal covers a number of issues including, the creation of a single capital instrument in Fonterra, transition from Peak Notes to Capacity Adjustment and the removal of Supply Redemption Rights.

“Farmers have the opportunity to vote on the proposed Milk Pricing proposal at Fonterra’s Annual Meeting in September. If 75% of suppliers who vote, vote for the introduction of Capacity Adjustment it will be introduced on June 1, 2004.

Voting can be made when attending the Annual Meeting to be held at 10.30am on Wednesday 10 September 2003 at venues throughout New Zealand . Proxy votes must be to Fonterra by no later than 10.30 am on Monday, 8 September 2003.

“The vote has the potential to deliver a significant redistribution of income within the industry, and it is important for farmers to carefully weigh up the consequences of their vote.

"All farmers have been given a work sheet, which allows individuals to review the impact of the Capacity Adjustment in different situations. DFNZ encourages them to use the working sheet to help understand the impact Capacity Adjustment may have on their finances should they experience adverse climatic conditions or should their production curve change.

“Farmers must also consider how the proposal fits in with the cooperative principals.

“When deciding which way to vote farmers need to note that several issues have been bundled together in this one vote, putting good decision making at risk.

“Irrespective of the outcome of the vote farmers should note that Fonterra has indicated that it will review the volume charge in the milk payment. DFNZ is committed to ensuring that review happens," concluded Mr Wooding.

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