What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
That's according to Richard McIntyre, a recent graduate of Fonterra's Governance Development Programme (GDP).
McIntyre is no stranger to rural leadership roles. He is currently the Federated Farmers dairy chairman, a councillor for Wellington Region and New Zealand Fish and Game, a New Zealand Dairy Industry Awards Trustee, and has chaired the Federated Farmers Sharemilkers Section for five years.
"Governors that have come up from within the industry are critical for the Boards of agri businesses. You need skilled farmer directors that relate to farmers and deeply understand the industry - you can't just bring in people from outside all the time," says McIntyre
He also sees merit in courses aimed at bringing such farmers up to code.
"Professional development courses like Fonterra's GDP can help narrow the gap to the independent directors and raise the overall standard of governance on rural and agri business boards."
Now in its 17th year, Fonterra's Governance Development Programme is custom-designed in conjunction with Massey Business School.
The programme exists to help identify and develop governance acumen in current and future rural leaders. Attended primarily by Fonterra supplying farmers, members of Livestock Improvement Corporation (LIC), Silver Fern Farms and Foodstuffs, the course includes a co-operative specific element that is unique to New Zealand.
McIntyre says the programme is "about developing skills rather than just book learning" and is supported by access to an impressive listof New Zealand governors who add real world examples to the theory-based work.
"We got to meet a huge range of governors; people highly respected in their industry. They shared their candid experiences very openly and it was fascinating to hear from them.
"To hear about past issues you read about in the papers, but through a governance lens and from people that were on the ground at the time - it's totally different.
"Having access to that level of skill and experience is awesome. Along with the tutors, they were genuinely interested in imparting knowledge, not just presenting course material," he says.
Diversity of thought, recognised as a critical element of any successful board, is something rural communities have in spades.
McIntyre says his 14 peers from the programme were all different ages, and at different stages and levels of experience across industries and not-for-profits.
"Everyone brought different experiences and perspectives to the programme, which was really powerful. We formed a really tight group, based on trust.
"We could challenge each other from the point of view that we were trying to make each other better, as opposed to just being critical. If you can get to that point, you get some great outcomes."
Applications for the 2023 Fonterra Governance Development Programme open on 19 September. It is a competitive selection process, open to all Fonterra shareholders and herd-owning sharemilkers supplying Fonterra.
A limited number of places are also available for members of LIC, Foodstuffs, and Silver Fern Farms.
For anyone considering whether to apply for the GDP, McIntyre says making sure you have the time and mental space is key.
"The hourse you put in are not excessive, but it's not just about turning up and checking off the course material," he says.
"You get out what you put in and you want to really have the head space to reflect as you go, on what you've learned and how to apply it."
Applications for the Fonterra Governance Development Programme close on 24 October 2022. For more information contact This email address is being protected from spambots. You need JavaScript enabled to view it..
