Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
As part of the revamp, last week it announced a five year, multi-million dollar strategic agreement with Australian infant formula player Bellamy's to manufacture a range of new baby nutritional powders.
Fonterra managing director Oceania Judith Swales describes this as part of Fonterra's transformation of its Australian business.
"This is our strategy in action for Australia where we focus on the areas we can win in a highly competitive market to deliver the best returns," says Swales.
"We are actively growing our nutritionals business through strategic partnerships and agreements which will see the Darnum nutritionals plant move towards full capacity.
"Our Australian business has particular ingredients strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses; and today's announcement with Bellamy's Australia – one of the fastest growing infant formula companies – reaffirms our strength in nutritionals.
"The Darnum plant is a leading nutritionals plant in Fonterra's global network.
"Leveraging our Fonterra Research and Development Centre in Palmerston North – the largest dairy innovation centre in the southern hemisphere – we will bring innovation to the Darnum plant and the nutritionals market to capture growing demand."
Bellamy's is one of the fastest growing infant formula companies with strong brand recognition and expertise in the organic ingredient supply chain, the co-op says.
"Bellamy's has grown for many years and financial year 2014-15 has been exceptional, achieving revenue growth of 156% from the year prior; infant formula comprises 88% of Bellamy's sales."
The proposed move will help support the growth of Bellamy's Organic in Australia and abroad, says Swales.
