TAF passes

The Herald reports:

Fonterra’s dairy farmers have voted in favour of the Trading Among Farmers scheme, paving the way for the biggest shake-up since the co-operative was formed in 2001, despite a vote for constitutional change not reaching the required 75 per cent.

Trading Among Farmers (TAF), which will let members of the investing public gain access to the dairy giant, has been a controversial issue for Fonterra’s 11,000 or so farmers who have been casting their votes over the past few days.

Fonterra chairman Sir Henry van der Heyden said yesterday’s special meeting of shareholders had given the board a clear mandate to proceed with TAF but some farming leaders said the vote was a less-than-ringing endorsement.

The first resolution for TAF, which required a simple 50 per cent majority, received 66.45 per cent support.

Not directly affected by this, but I think it is a good thing. A lower vote in favour would have been seen as not enough of a mandate, and Fonterra would lose direction.

I think having both dividends and milk payouts will lead to fairer pricing also.