Episode 130 - The end of an era for Tatua

Tell us then a little bit about that period as Tātua was making the decisions to stand outside of Fonterra.

We saw that with Tātua and with Westland for various reasons.

So what was the discussion that was going on? Because you were at the board table, Dr.

Alan Frampton was chair.

What was the discussion that was being had and why was that decision made?

It's a great question and quite a big question.

So the big thing was in 1996 when I would have had my first board meeting, must have been October, November, I think.

We used to have our election slightly earlier.

The financial years changed for all the companies.

Used to be 31st of November.

It's now 31st of July is the closing balance date.

So everything's sort of shifted.

Anyway, the talk at the time was deregulation is inevitable.

It's just a matter of how and which government is going to enable it.

So when I was there, there was an appetite for it.

I think to some extent it was driven by New Zealand Dairy Group on the first attempt.

It was actually a national government.

And I think John Luxton was actually the Minister of Agriculture who was a Tatua supplier and as it turned out, a New Zealand Dairy Group supplier as well.

And ultimately a Fonterra and a Tatua shareholder.

And the first attempt, it didn't get through.

But it was still going to happen.

So we were in a position where The big companies were actively trying to figure out what it might look like, what the regulation might look like, whether it was a one company situation or two company situation, what would happen to the New Zealand Dairy Board, who would get what, all of those sort of discussions.

The dairy companies had ended up with shares in the New Zealand Dairy Board and even that in itself, there was quite some discussion as to whether The shares in the New Zealand Dairy Board should have gone directly to the farmers or whether it should have gone to the co-operatives.

And there was a lot of debate about that.

No, no, it's a farmer.