Now lets Get on with ItTuesday, Jun 19, 2001
The basic principle of democracy is that the pros and cons of the argument are put before the voters
and the filtering process leaves a proposal to be voted for or against. Voting is undertaken under
terms where the majority carries the proposal. All participants then put their shoulders to the
wheel to maximise the benefit.
A cooperative is in fact a much more democratic process than most other forms of business structure
because the fact is share holders control the supply of the raw materials to the business. Disaffected
suppliers have choice to supply another processor or shift to another land use. Both have an
impact on company viability
Yesterday the majority of dairy shareholders took a major decision by voting for a significant change
in direction. It has been a torturous journey but a result has been achieved.
It is time for the objectors to accept a new environment is in place with significant rule changes that
provide new options and new mixes for the sale of milk from the individual farm. Although the
sums will be complex and the answers less than perfect it is clear that the industry is in a condition
to grow in a number of different directions if alternative options prove to be more profitable
than the primary structure.
Options may appear that may satisfy the most ardent risk taker and just as surely the most cautious
conservative.But obsessive greed based on attempting to take paper share value from the newly merged
company is the awkward barrier. Company stability for the many is more important than the purity
of transaction for the few.
It is this principle that ensured the industry flourished in the past and it is equally as relevant
in the future.
The future bonanza lies in staying with the cooperative.