Fonterra preparing to pull the rug from under NZ dairy farmer?

This is verbatim from a Facebook message from Penny Bright

'Whistle-blower ALERT!'

Whose interests are the Board of Fonterra serving? 
NZ dairy farmers or foreign bankers?

Penny Bright

Via Facebook

2 August, 2015

FYI folks - I received this 'whistle-blowing' email this morning.

This is the beginning of it :

" Regarding NZ Herald: Fonterra slashes farmgate milk price to $3.85"

~~~
TRANSLATION: THE BOARD OF DIRECTORS ARE PREPARING TO NOT ONLY PULL THE WOOL OVER ALL DAIRY FARMERS IN NEW ZEALAND – BUT THEY ARE PREPARING TO PULL THE RUG FROM UNDER THEM AS WELL:

HERE IS HOW I BELIEVE IT IS BEING PLANNED:

I thought it was rather strange this afternoon (to say the least): to hear that the Fonterra Board had announced the revised farm-gate milk pay-out would be slashed down to $3.85 KgMS, while they INCREASED the dividend pay-out per share to 40-50 cents, while offering farmers an interest free loan in the form of .50 cents per KgMS of production (about $75,000 per farmer and costing Fonterra about $400-500 million).

This is unique, as if you were running any other business making massive losses like this, the last thing a prudent businessman would ever do is pay out any dividend to shareholders at all, let alone a big one like this.

There can only be two reasons that the Board are doing this.

a) They are either totally incompetent or

b) They are totally corrupt and are secretly working for the foreign banksters that hold Fonterra’s huge debt.

Currently, Fonterra’s debt to equity ratio has just risen to over 50% which is bad when the global price of dairy products are collapsing the way they are.

The following is what I believe is happening:

1) Fonterra’s share structure is primarily divided into three:

a) Trading Among Farmers Shares

(These are called “Wet Shares” that farmers have to buy based on one share for each KgMS supplied. These shares have Voting Rights).

b) Farmers can also buy extra shares as well called “Dry Shares” up to a certain limit.

c) FONTERRA SHAREHOLDERS’ FUND:

These shares are called “units” that the public and foreign bankers and institutions can own and are listed on the NZ Stock Exchange.

These are non-voting shares, but they receive the same dividends as the voting shares.

2) This is why I believe the Board of Directors are secretly, deliberately planning to pull the rug from under the farmers, while disenfranchising them from their control of the co-op, Fonterra.

By reducing the milk pay-out to the farmers, and increasing the dividends to the shareholders (a good proportion of which already are foreign bankers who own units in the Fonterra Shareholders’ Fund) they are going to strengthen the position of the shareholders but put increasing pressure on the farmer suppliers.

In turn, as the farmers become increasingly desperate, a solution to help them with their finances, on top of the .50 cents per KgMS that has already been offered by the Board, will be a request to get the approval of the farmers to change the Fonterra Constitution to allow the “Wet Shares” with voting rights to be sold (to help relieve farmers’ debts) to the general public and listed on the NZ Stock Exchange together with the Fonterra Shareholders’ Fund units.

When this happens, the foreign banking pirates, who already hold Fonterra’s debt and the majority of the shares in the Fonterra Shareholders’ Fund – will buy up all the voting right shares and end up owning the lot and controlling the company – and the dairy farmers will all end up as their forebears were in feudal England, no more than penniless peasants and serfs.

For years I have been predicting this, but now the picture is becoming much clearer;

Only time will tell if this eventuates, but it is looking more likely by the day. ......"
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LINKS which help the 'dot-joining' ....

http://www.fonterra.com/

…/FONTERRA%20FORECASTS%20TOTAL%20PA…
07 AUGUST 2015FONTERRA FORECASTS TOTAL PAYOUT AVAILABLE TO FARMERS FOR 2015/16 AND ANNOUNCES FONTERRA CO-OP SUPPORTFONTERRA CO-OPERATIVE GROUP LIMITED HAS TODAY ANNOUNCED THAT THE FORECAST TOTAL PAYOUT AVAILABLE TO FARMERS IN THE 2015/16 SEASON WILL BE $4.25-$4.35, COMPRISING:

• Forecast Farmgate Milk Price $3.85 per kilogram of milksolids (kgMS)

• Forecast earnings per share range of 40 - 50 cents per share.

Fonterra has also announced Fonterra Co-operative Support of an additional 50 cents per shared-up kilogram of milksolids to support farmers this season.
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Interesting how many of Directors on the Board of Fonterra are connected with banking ....

https://www.fonterra.com/

…/board+of+dire…/board+of+directors