Fonterra Council reappoints Grant Samuel | Rural

The Fonterra Shareholders' Council has reappointed Grant Samuel & Associates as Fonterra's independent valuer for the 2010/11 season.

Council chair Simon Couper expressed confidence in the valuation process and said the reappointment of Grant Samuel followed a thorough review of the 2009/10 season.

The council appoints the independent valuer to determine both the restricted market and fair value ranges of a co-operative share for each season. The restricted market value range reflects the fact that Fonterra shares can only be held by supplying farmers. The council is also responsible for making sure the valuer acts in accordance with the provisions of the Fonterra constitution.

The actual fair value and restricted market values are determined by the Fonterra board, but must be within the valuer's ranges.

Following Fonterra farmers' approval of capital structure changes on June 30 this year, the valuer is required to have regard to the arrangements for trading among farmers when determining the restricted market value range.