Farmers dump two directors from Fonterra board

11.00am

Fonterra's 12,600 directors have dumped two incumbent directors from the board, retaining a third sitting director, Harry Bayliss, of Manaia, Taranaki.

The highest polling candidate was Mr Bayliss, a former Dairy Board director who gained a high profile as a trouble-shooter for Fonterra -- particularly during the company's partial acquisition of Australian company Bonlac.

The two new directors are John Wilson, of Te Awamutu, a former chairman of the company's farmer watchdog group, the Shareholders' Council, and former banker Stuart Nattrass, from Christchurch.

Several high-profile candidates from the field of 11 -- as well as two sitting directors, Richard Booth of Whangarei, and Marise James of Inglewood -- were unsuccessful.

They included the Government's former special agricultural envoy, former farmer politician Malcolm Bailey, of Feilding, a deputy leader of the Shareholders' Council, Northland farmer businessman Graeme Edwards of Pakotai, and former NZ Dairy group director Hilary Webber, of Rangitata.

The big Federated Farmers lobby is understood to have backed Mr Bailey, Mr Wilson and Mr Nattrass.

Only three directors were required for the board of 11, which includes nine farmer-elected representatives, and fourth, fifth and sixth-highest voting figures went to Mr Bailey, Mr Booth and Mr Edwards, respectively.

Less popular choices were Horizon Energy chairman Colin Holmes of Bay of Plenty, and commercial director and Pouakani Dairy Farms' trust chairman Kingi Smiler, of Wellington, who trailed the field with Maurice Hardie, of Papamoa.

Mr Wilson and Mr Nattrass will join the 13-member Fonterra board on June 1.

Fewer than half of Fonterra's shareholders voted in the election.

The incumbent directors were expected to lose the votes of farmers determined to "punish" the company for its low payout this season, forecast at $3.60/kg.

Fonterra chairman Henry van der Heyden told farmers last week not to expect an 11th-hour rally in Fonterra's international returns.

Mr Van Der Heyden said Fonterra's best payout estimate for the new season was $3.80. The new season officially starts on Sunday.

Mr van der Heyden said today he respected the shareholders' decision to change the make-up of the board.

"I welcome Harry Bayliss' re-election," he said. Mr Bayliss had 15 years of valuable experience as a director of Fonterra and its legacy companies, the Dairy Board and Kiwi Co-operative Dairies.

He said Mr Wilson had been a farmer leader in both Fonterra and NZ Dairy Group, and was a current member of the company working party trying to sort out Fonterra's capital funding structure.

Mr Nattrass was a new face in the industry, and his banking expertise would provide a welcome set of skills to the board.

At the same time an election was held in Ward 17 of the Shareholders' Council, where the successful candidates were David Pearce and David Hopkins, while Philip Nixon was unsuccessful.

- NZPA