increase font size
Christina Zhu.
Fonterra's China business head Christina Zhu says its Beingmate joint venture needs a leadership revamp.
Zhu, Fonterra’s Greater China president and Beingmate joint venture board member, says performance starts with good people.
“Beingmate needs a strong leadership team and chief executive; Fonterra is in the process of working with Beingmate to ensure that’s in place,” she told Dairy News. “It is critical to have the right people at the helm; we are working on stepping up governance.”
This month Beingmate Baby & Child Food Co reported a net loss of $230 million for 2017, bigger than expected. Fonterra owns 18.8% of the company, which is listed on the Shenzen stock exchange but has been warned it risks being delisted.
Zhu, one of Fonterra’s two representatives on the Beingmate Baby & Child board, visited Auckland last week for a major farmer network conference.
She says Fonterra is disappointed with the result. “The deterioration in 2017 performance is unnaceptable; performance has to turn around.”
Zhu says the infant formula sector in China is growing and Beingmate is well placed.
“It has never had a food safety issue and still is a trusted brand with a well-positioned manufacturing footprint; there’s a lot going for them.”
She says an effective distribution network and strong leadership are missing.
Fonterra said last week in a statement that Beingmate’s announcement is of the audited results for February 2017 to January 2018.
“Its final losses for the year have increased by about $20m more than previously announced, which is disappointing but broadly in line with expectations, based on previous performance updates.
“The result further reinforces the urgency of Beingmate’s business turnaround plan. We continue to push for the appointment of a new independent chief executive, improved internal controls and a focus on unlocking the right distribution channels, which we believe are key to Beingmate realising its potential.”
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
A Taupo company says it's the first to bring CO₂-powered water heating technology to New Zealand dairy sheds, helping farmers cut energy costs by up to 85%.
Waikato is home to a diverse range of lakes, and experts say they urgently need better management and restoration.
Federated Farmers is renewing its call for Greenpeace to be stripped of its charitable status immediately, following the activist group's latest publicity stunt.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
