The Shareholders Council has welcomed the decision by Fonterra - that of not pursuing a listing option of the co-op's shares.
It was specified by the group that the most important thing for its members remains ownership and control of the co-op. The group represents the interests of farmer shareholders.
It should be noted though that Blue Read, Shareholders Council Chairman, holds the viewpoint that the decision doesn't essentially rule-out other options being considered in the future.
It has been forwarded by Fonterra that the upcoming consultations with farmer shareholders do not see a public share listing as its part.
The declaration by Fonterra comes after the rumors about the giant dairy co-operative's capital structure review.
With this announcement, the shareholders will be permitted to debate the issues without needless distraction.
As per Chairman Sir Henry van der Heyden, "Many of our shareholders have made it clear they want to retain 100% farmer control and ownership of their co-operative."
Another hike to the flagging returns for dairy farmers was presented by Fonterra's latest whole milk powder online auction last night.
The early hours of the morning saw the internet-based sale platform, globalDairyTrade, concluding its September event, with average prices for whole milk power increasing 24.2% to $US2858 a ton - $US557 up on last month.
This arrives following a 25.8% increase during the August auction reaching $2301 per ton.
July saw prices for food items in New Zealand increasing by 0.6%, mainly because of higher prices for vegetables as the growth environment was hampered due to cold weather.
Thursday saw Statistics New Zealand publishing its figures, which showed vegetable prices 12.3% higher than in July last year, but not quite at the levels seen in August
A rise by 3.1% was seen in fruit and vegetable prices during the last month, with lettuce prices up a further 41.6% after more than doubling in June.
As per the media reports, impressive investment is being maintained by Industry organization Meat and Wool New Zealand, amidst recession in research and development (R&D).
The company, according to CEO Scott Champion, has maintained a healthy value in research and development investment, by predicting matching funding from the government's Primary Growth Partnership fund.
The company had promised $190 million over the next four years towards the fund, which is a part of the government's Budget delivered in May.
A 26 per cent jump in the price of whole milk powder has been noticed at Fonterra's latest auction. The dairy farmers are seeing it as just the commencement of a new upward trend.
Fonterra specified that the average price today rose to $US2301 ($NZ3495) a tonne.
If adhered to Nigel Kuzemko, Fonterra's Commercial and Strategy Director then there has been starting of some tentative signs of improving demand.
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