The board was delighted today to present the outline of the proposed constitution for a co-operative company to a meeting of growers held after the NZ Walnut Industry field-day at West Melton. The well attended meeting was also told about progress in preparing a prospectus for investment, and details about supplying walnuts for processing this year. There was a strong expression of support for the new structure from those present. The notes from the meeting are available here, and are available by email to those who wish to register their interest. The company will be registered with the name: Walnuts NZ Co-operative Limited.

The Board has drafted a statement of purpose for the proposed company:

The purpose of our co-operative company is to grow the wealth and security of our NZ walnut producer shareholders through our common goals of:
– Reliable supply of premium-value product to our consumers
– Providing a path to market for our shareholders
– Efficient and effective processing and cohesive marketing
– Unity of purpose amongst our suppliers
– Behaviour that is socially, financially and environmentally responsible

The transitional board has been very busy and is almost ready to present those who have registered their interest as potential shareholders with a constitution, a budget and a prospectus for investment. We have been taking legal advice and expect to call a meeting in the next day or so to present the proposal.

The board is leaning strongly toward a co-operative company as the best structure for the new entity, though began its work with an open mind on possible company structures. We are currently working on drafting a Constitution for an industry-owned co-op.

The board is aware that some smaller growers are worried the process of involvement in an industry-owned processing business will be complicated and costly for them. The board is aiming to make involvement as simple as possible and would ideally like to see these growers become shareholders. However, we do plan to make it possible for growers with small volumes of crop to sell to the factory even if they choose not to become shareholders, though we are still working out the conditions of supply.

The board was delighted to hear that the NZ Walnut Industry Group has generously agreed to loan the transitional board $10,000 (over a 3-year term). The money is to assist with costs associated with setting up a new business entity. These costs are likely to include legal fees (for assisting us in drafting a Constitution) and plant valuation.

At the board meeting today we heard that 36 orchards have registered their interest in being part of the new company (subject to further details of financial structure and governance). These 36 orchards collectively estimate that they will supply 100 tonnes of walnuts in the coming season.

This is just the beginning, but it is a very good beginning. The board is encouraged by the level of support and is moving quickly on several fronts to ensure that suppliers are offered an attractive proposal to join the company early next year.

The transitional board elected at the meeting of suppliers on 6 November has met and begun work. The members of the board are Colin Prebble (chair), Frank Brenmuhl (deputy chair), Heather North, Andrew Horsbrugh, Nelson Hubber, Basil Meyer, and Graeme Nicholas. The first meeting was held on Friday 21 November.

Having elected its office bearers the board got down to agreeing on a work programme and sharing out the responsibilities.

The board will meet again on 5 December.