FONTERRA CO-OPERATIVE GROUPFonterra Shareholders' Council Chair Duncan Coull, pictured, collected the 2017 Co-operative Business of the Year award in recognition of Fonterra’s significant and positive impact within the co-operative community.
Watch this introductory video to learn more about this country’s largest co-operative, the global dairy nutrition company Fonterra – owned by 10,500 New Zealand farmers and their families.
Fonterra’s Co-operative Philosophy:
- Shares in Fonterra Co-operative Group can only be held by supplying shareholders.
- Fonterra supplying shareholders agree to the dual commitment to supply milk and invest capital.
- Supplying shareholders will be issued and must hold co-operative shares in proportion with their total milk solids supplied.
- Control of Fonterra is exercised by its supplying shareholders who have voting rights in proportion to their total milk solids supplied.
- Financial benefits and obligations that arise from cornerstone activities are allocated to supplying shareholders in proportion to their total milk solids supplied.
How these Principles are applied:
Maintain co-operative culture
- Fonterra exists for the mutual benefit and sustainability of its supplying shareholders.
- Fonterra is committed to co-operative ownership of cornerstone activities.
- Transactions between Fonterra and its supplying shareholders must be transparent and fair.
- Supplying shareholders acknowledge that Fonterra must act in the collective good of all supplying shareholders.
Accept all shareholders’ milk
- Fonterra will collect all supplying shareholders milk that meets the Terms and Conditions of Supply.
- Fonterra must provide supplying shareholders with timely, transparent and economic signals as to the value of their milk.
- Fonterra will provide supplying shareholders with timely, relevant information and services to help manage their respective businesses.
Maximise sustainable returns
- Supplying shareholders invest in the collection, processing and marketing of their milk to enhance its value.
- Fonterra’s principle purpose and priority focus is to maximize the sustainable vale of supplying shareholders’ milk.
- Payout is of primary importance to meeting supplying shareholder needs.
- Economic sustainability is fundamental to ensuring the co-operative’s longevity.
Inform, Educate and Consult
- Fonterra will keep supplying shareholders well informed in a timely, transparent and balanced manner consistent with their status as owners of the company.
- Fonterra will consult fully with supplying shareholders before implementing any significant changes that impact upon shareholders.
- Well informed supplying shareholders can and should participate actively in their co-operative.
- The commitment to inform, educate and promote the benefits of the co-operative extends to all stakeholders.