It was a big day for business with Fonterra gaining the mandate to introduce share trading amongst its 10,500 shareholders.

90% of the dairy farmer shareholders voted to ring in the changes so that farmers will be able to own and trade their shares.  Such harmony on an issue is amazing and it’s not like they’re just toeing the company line, because there have been a number of occasions where the farmer shareholders have scuppered plans out of the Fonterra board room.

So within 15 months farmers and even the public and dairy industry stakeholders will be able to buy units in a new shareholders fund to be established.  The beauty is that it eases Fonterra's balance sheet and provides permanent capital for growth.

Around 50 per cent of the votes were posted using the internet and mostly before the series of meetings around the country to promote the idea, suggesting farmers had made their minds up and didn’t need further convincing.

At the moment Fonterra have to pay farmers' shares if they leave the or if they have reduced milk supply, so it becomes a drain on the company with money set aside for that eventuality.  And it the last couple of years Fonterra’s had to pay out hundreds of millions of dollars because farmers have been struggling with the recession and the drought.

So now the farmers will have the responsibility and when times are tough they can sell their shares to other farmers if need be.  So happy campers at Fonterra head office and no doubt on the farms around New Zealand.

Not so sure about the Allied Farmers shareholders.    You have to wonder why anyone would have chosen to get involved with Hanover Finance.   With the shareprice sitting at 3.6 cents and the assets being halved we now find court action looming as Allied Farmers question some of the practices of the Hanover Directors.   Who’d have thought!