Fonterra’s board has publicly rejected claims made by the Fonterra Shareholders’ Council regarding insufficient transparency and consultation with its farmer shareholders.

Fonterra Shareholders’ Council, which represents nearly 8,000 farmer-owners, expressed concerns in its 2024 report, stating that while there has been some improvement in transparency, about half of the cooperative’s members feel their expectations are not being met.

“Our April 2024 survey results again show that members consider transparency around decision-making and strategy to be the most critical activity for strengthening and maintaining Fonterra’s cooperative spirit.”

“This is significant given the weighty decision that may be before shareholders as the board and management explore full or partial divestment options for some or all of Fonterra’s global consumer business, as well as its integrated businesses, Fonterra Oceania and Fonterra Sri Lanka.”

“While this year’s survey results evidence improvement, expectations are not being met for around half our co-op’s members regarding transparency and the genuineness of consultations.” 

The council said this needs to be improved.

The council reiterated its previous requests this year for additional information regarding the potential exit from the consumer brands business, which generates over $3 billion in revenue.

The council highlighted that during its discussions this year with Fonterra’s auditors, KPMG, they observed “a significant and positive change in Fonterra’s culture since their audit appointment in August 2019.” However, the council also noted feedback from members expressing a desire for more detailed information regarding the potential divestment than what has been provided so far.

Fonterra’s board has expressed disagreement with the Fonterra Shareholders’ Council’s interpretation of the 2024 survey findings.

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