The purpose of Fonterra’s Trading Among Farmers (TAF) initiative is not to obtain new capital, the New Zealand-based dairy exporter has reiterated.
Under the TAF scheme, which shareholders are set to vote on next week, farmer shareholders will be able to buy and sell their shares to other farmer shareholders using the Fonterra Shareholder Market.
According to Sir Henry van der Heyden, the cooperative’s chairman, the cash invested in buying units in the Fonterra Shareholder’s Fund will go straight to the farmers selling their shares, not to the firm.
“During the recent farmer meetings, it had been suggested that the purpose of Trading Among Farmers (TAF) is to raise capital,” said van der Heyden.
“While debate on TAF is welcome, the misconception that TAF allows new or outside capital into the Co-op needs to be laid to rest.”
“All our capital will continue to come from our supplying shareholders based on milk supplied. TAF enshrines this principle,” he added.