KEY POINTS:
Fonterra rigged up a big stage to unveil some big ideas but left the big decisions to farmers on plans for a new capital structure.
The Christchurch venue had the feel of one big enough for a meeting many times larger than the roughly 250 farmers who turned
up.
Chairman Henry van der Heyden spoke at a podium big enough for three with a bank of six microphones, three massive screens dominating the backdrop, and lights so powerful one or two farmers had to shade their eyes just to see the brave new vision.
More than 2000 farmers gathered at seven satellite-linked meetings held nationwide.
The Fonterra board is looking to pull the proverbial rabbit from the magician's hat with their preferred choice for a new capital structure.
The co-operative wants to protect against farmers cashing in shares and ensure it can get the funds needed to take advantage of global opportunities.
To do this the board needed a bold move to make a connection with the stock market and its eager investors, but also a conservative approach so that farmers didn't slam the gate for fear the company would be sold out from under their feet.
Many would-be investors may be satisfied at giving up the opportunity to build a big stake in exchange for the chance to buy up to 10 per cent of one of the world's biggest dairy operators, and finally get some exposure to New Zealand's biggest economic sector.
Put it this way - a partial float could still see Fonterra become one of the stock market's largest listed companies and a small piece of a big cake is worth having.
Yesterday's presentation had a deliberate pace. Van der Heyden occasionally stumbled on a word, nerves perhaps, a desire to get the message across clearly, definitely.
As company meetings go it was quiet, no rumblings from the stalls and, perhaps crucially for van der Heyden, no audible intake of breath when he announced the concept of a market listing.
With plenty to think about, the meeting broke for lunch and progress towards the food appeared good-humoured.
Overall it was a slick job, although a media polished video was too much for one farmer who preferred to just be told the news straight.
Talk around the mini cottage pies was that farmers were not shocked by what they had heard and if it made business sense they would support the board.
Mike Fleming from Te Pirita said there was always going to be a need for some form of listing to access new capital.
"The biggest issues in my mind are going to be milk pricing mechanism and the process of determining share value."
After the meeting van der Heyden said he sensed a positive mood.
"I would have expected a bit more heat to come out through the questioning process because usually farmers will stand up and say there's no way I'm supporting any of this." The company has given itself plenty of time and the softly, softly approach will quell some farmer anxiety about the change, but the success of the initial pitch could still be crucial for building momentum towards the first vote, expected next May.
Van der Heyden is confident farmers will join the board for the latest evolution of the co-operative and he's determined.
"Don't underestimate how committed I am to this outcome," he says.
Van der Heyden will be hoping he's found the winning formula - co-operative with a market listing, farmer control but external investors.
He's got his hand on its ears but will we see the rabbit?
