Fonterra chair to step down in 2012

Henry van der Heyden, chairman of Fonterra, has announced that he is stepping down early, at next year’s annual meeting, instead of in 2013. The announcement has fuelled speculation over Fonterra’s share trading scheme, part of a major capital restructure of the dairy giant. It is the second restructure attempt by a board led by van der Heyden, who has been chairman for nearly 10 years.

The plan is anchored by the introduction of share trading among farmers with a restricted public offering of units, and was overwhelmingly supported by farmers in a vote last year. However, unrest in the shareholder ranks has been growing as more technical details emerge and in the delay in getting legislation through to enable its introduction.

Farmers are concerned about an aspect of the share trading proposal perceived to threaten their continued 100 per cent ownership and control of Fonterra, and van der Heyden has been unable to reassure them.

Sir Ralph Norris has also been named to the Fonterra board as a non-farmer director.