Fonterra has defended a so-called 'culture of extravagance' which has crept in since the cooperative was formed. At the annual meeting, more than 1500 of Fonterra's 13,000 shareholders gathered at seven venues to pose questions arising from the group's first annual report. Cambridge-based shareholder Gary Reymer said corporate costs had exceeded those identified in the merger business case by NZ$80m (US$37.7m) and were $34m over budget.