Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The co-op has two vacancies on its board; two of the three directors retiring by rotation are stepping down. As part of its new governance structure, the co-op is reducing the board size from 13 to 11; while three sitting directors retire every year, only two vacancies will be filled over the next two years.
Sitting directors Malcolm Bailey and Ian Farrelly have told the board they will retire at the co-op’s annual meeting on December 8. A third retiring director, DairyNZ chairman Michael Spaans, is seeking re-election.
Chairman John Wilson says Bailey and Farrelly are dedicated, experienced directors committed to cooperative principles and the business’ strategy of converting more milk into higher-value products.
“They brought to our board strong agri-business acumen and governance experience, and a passion for dairy farming; both are successful commercial farmers with farming interests in Waikato, the lower North Island and Canterbury.”
Bailey was elected to the board in 2004, after having been president of Federated Farmers. He chaired the board’s risk committee until May this year and is a member of the cooperative relations committee. He also chairs Dairy Companies Association of NZ (DCANZ).
Farrelly was elected to the board in 2007, after 20 years in banking. He is a member of the board’s audit and finance committee and the people, culture and safety committee. He is also a director of the Fonterra Shareholders’ Fund, from which he will also retire in December.
This year’s board election will be held under a new governance system, passed by Fonterra farmers last month. The candidates gaining nomination following the independent nomination process will be announced on November 4. The full list of candidates, including self-nominated candidates, will be announced on November 16.
Nominated candidates will be vetted by an independent selection committee and a report provided to the Fonterra board and Shareholders Council.
The new selection process also includes the option for every eligible farmer in Fonterra to choose to stand outside the process and be considered alongside their fellow farmers who have been recommended by the independent selection panel.
Farmers may then choose to follow the guidance of the independent selection panel or vote for any farmer who decides to stand outside this process.
The panel will be chaired by Dame Alison Paterson and include board appointee, John Spencer and Shareholders Council appointee Sir John Anderson.
