Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
"This will drive more cash back to our farmers, in turn helping strengthen rural economies," the written statement to the Dairy News says.
It was commenting on the letter which went out to about 4000 of its suppliers late last year wanting a 10% cut in prices and advising payment would now be 61 days after the end of the month an invoice was received.
"This is just one change we have made as part of a business-wide review and includes changes to our internal processes allowing us to be more responsive with our vendors and reduce our turnaround times with them," the spokesman says.
"We acknowledge that changes in payment terms will have an impact on vendors, and are working with them to help manage any potential impacts.
"The move to a 61 day term is in keeping with Fonterra's global standard term, which is already in place in many of our markets. The process of moving our vendors to our standard term has been underway for the last five years."
