Faceoff at Fonterra

The relationship between Fonterra's board and its shareholders is at rock-bottom and an independent facilitator has been brought in to ease tensions. Differences over the cooperative's future capital structure have fuelled the conflict writes The Rural News. Fonterra leaders made the admission after concerns were raised by Waikato dairy farmer John Bluett at the cooperative's annual meeting in Palmerston North last week. Fonterra chairman Henry van der Heyden says there is tension between the board and the council. Heyden told the meeting that an independent facilitator has been brought in to sort out differences. We all want the same thing out of the cooperative,' he says."˜The difference is how we get there.'The Co-operative board is under fire for its handling of the capital structure review. Shareholders claim the board's preferred option was dumped on them without consultation. Farmers have made it clear that retaining ownership and control of the cooperative is a priority