Fonterra Begins CEO Search Following Miles Hurrell Resignation
Fonterra chief executive Miles Hurrell has resigned after eight years in the role.
The co-op paid 53c/kgMS less than what was calculated in accordance with the panel.
Despite being short-paid, Fonterra farmers received a record payout of $8.40/kgMS.
Speaking at the co-op's annual meeting in Palmerston North yesterday, council chairman Ian Brown says it was the right decision.
"The council questioned the rationale for and the effect of the board's decision and after discussions with the board and management we are satisfied with the explanation for this," he says.
"The council's view is that borrowing money to distribute revenue that was not earned in order to meet the milk price panel's recommendation would not have been in the best interest of our farmers.
"The milk price is of such importance to our farmers that any movement away from the price outlined by the manual, positive or negative, must be scrutinised and the board must be very clear in their justification for any change."
He noted that the farmgate milk price provides farmers with an accurate signal from which to make decisions around on-farm production and cost.
It also drives the co-op management to work to ensure the maximum sustainable payout to farmers is realised, he adds.
"The council has the utmost confidence in the manual and believe it is robust and transparent," Brown says.
