Farms that are sharing up and have yet to reach 33% of their standard amount to just 587.
The effects of Fonterra’s flexible shareholding options have steadied during the latest three-month reporting period.
The total shares on issue above or below the share standard (one share for every one kilogram of milksolids produced annually) are now 13.21%, down from 13.25% in the previous reporting period.
The shares held by ceased shareholders and permitted transferees have also fallen from 10.09% to 9.44% on November 28.
Both measures are below the permitted thresholds for flexible shareholding metrics in the co-operative’s constitution.
Under the two-year-old flexible shareholding capital structure, new shareholders have up to six seasons to reach their minimum holding of shares, while shareholders at the time of the capital structure vote have up to 15 seasons to share down after they cease to supply.
The latest report says Fonterra has 8127 supply farms with annual production of 1.42 billion kg milksolids, representing the aggregate share standard.
Farms that are sharing up and have yet to reach 33% of their standard amount to 587, producing 7.5% of total milk supply.
A further 980 farms have between 33% and 79% of their share standards.
Some 5080 farms have between 80% and 120% of their share standards, and 1480 have more than 120%.
Not including new suppliers still sharing up, the flexible rules allow farmers to hold shareholdings between 33% and 400% of their standards.
They are enabled to sell down and deploy share capital elsewhere or buy share multiples by way of added investment in their own co-operative.
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