Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Council chairman, Ian Brown: "Given the pressure placed on Fonterra by this year's drought and the unpredictability experienced in international markets the cooperative has delivered a satisfactory return for farmers."
Brown says the success of the integrated ANZ (Australia/New Zealand) business, which has encountered tough market conditions of late, is vital for Fonterra.
"The ANZ business has been working hard to adapt to the changing Australian business environment," says Brown.
"Accordingly, changes have been made to the ANZ business, there's a cost associated with these and the council will continue to monitor the situation."
Brown was satisfied with the final dividend and said the co-op had once again displayed a welcome degree of pragmatism in its decision on retentions given the cash flow issues being faced by some Farmers.
"That Fonterra delivered a final dividend of 32 cents provides the council with sufficient confidence that the business is working efficiently.
"LATAM (Latin America) and AME (Asia/Middle East) have again delivered at a local level and New Zealand Milk Products had a solid year.
"We are pleased with the current status of the gearing ratio as this will allow flexibility moving forward.
"Farmers will be happy to put the climatic challenges of last season behind them and are buoyed by the forecast payout for next season."
