fbpx
Print this page
Tuesday, 27 March 2018 09:55

Fonterra board steps in to salvage investment

Written by 
Fonterra chief executive Theo Spierings says the co-op is “working hard in the background” on the Beingmate investment. Fonterra chief executive Theo Spierings says the co-op is “working hard in the background” on the Beingmate investment.

Fonterra has appointed a board sub-committee to salvage its disastrous investment in Chinese infant formula trader Beingmate.

The co-op says a board working group – that includes independent directors Simon Israel and Clinton Dines -   is “providing guidance and oversight” as the senior management team work to recover the investment.

Both Israel and Dines have significant China experience and expertise.

Fonterra chief executive Theo Spierings says the co-op is “working hard in the background” on the Beingmate investment.

Spierings acknowledged that revising the Beingmate investment is unacceptable to shareholders and unitholders. “The recovery of the value of this investment is the number one immediate priority for me and the senior management team.

“To be blunt, the investment in Beingmate has not gone the way we expected and there are things we would do differently knowing what we know now. We are very focused on doing all we can to get things where they need to be.”

As an 18.8% shareholder, Fonterra doesn’t have direct control over the Beingmate, which was the number one infant formula in China until two years ago.

But the co-op is working with Beingmate founder and majority shareholder Xie Hong to “influence its direction and an urgent business transformation”.

“We see there are a number of opportunities to reverse the current performance, unlock the distribution network and meet customers’ preferences for e-commerce,” says Spierings.

“While this seems like a slow process and we’re not allowed to share all of the information about Beingmate’s business, we are working hard in the background to get ourselves in a position where there is a tangible action plan for transforming Beingmate that we can share more widely and monitor progress,” says Spierings.

More like this

Carbon zero milk

Fonterra has joined forces with a supermarket chain to deliver what it claims is NZ’s first carbon zero milk.

Winners committed to environment

It's not the first time Fonterra’s John Wilson Memorial Trophy recipients, Nick and Nicky Dawson have been recognised for their sustainability efforts.

Dairy champions

Hawke's Bay dairy farmers Nick and Nicky Dawson have been awarded Fonterra’s John Wilson Memorial Trophy for responsible dairying.

Featured

 

Limited feed puts ewes at risk

Severe feed shortages in parts of the country mean many ewes are on a nutritional knife-edge heading into lambing and could be at risk of developing metabolic disorders.

Jack’s unique solution

Jason Jack was left with severe spinal injuries after a wakeboarding accident when he was 29, but that hasn’t stopped him getting out and about in difficult environments.

National

$10 payout!

A small but select group of Fonterra farmers are on the cusp of setting a new milk payout record.

The migrant workers dilemma

Dairy farmers want more Kiwi workers, but they also want relaxed immigration restrictions. So, what's the problem?

Producing milk, the Miraka way

The goal of Māori-owned dairy company Miraka, near Taupo, is to become the most sustainable dairy company in the world.

Machinery & Products

Landpower invests in cow central

One of Australasia’s largest, privately-owned farm machinery distributors, Landpower is building a new $10 million complex adjacent to Hamilton Airport.

Maize moisture in a moment

With forage maize playing such an important part of the New Zealand fodder supply chain, a useful hand-held moisture measuring…