Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
Director of NZ manufacturing Mark Leslie says the winter shutdown is a key time of preparation for the season ahead.
"Each year we process 18 billion L of milk, mostly in spring. The work we're doing now readies us for that peak period."
More effectiveness and efficiency at maintaining sites is their focus, Leslie says. "We've always been efficient in our maintenance projects, so the challenge this year was to... do things better, faster and smarter."
Hundreds of factory staff are working on about 500 projects nationwide, ranging from major capital works to minor overhauls.
Winter shutdown manager at Te Rapa, Blair Bond, refers to an "owner's mindset" among the manufacturing staff.
"We treat the assets as if we were their owners – putting ourselves in our farmers' shoes and thinking about how we can do things more effectively and [save money]."
Some work will lead to change in the way the plant processes milk during the milking season. Bond gives the example of the D4 evaporator: the staff suggested splitting the process into stages, which will allow the evaporator to run 6% longer – more milk processed each day.
"It's year-round for us. Year-long we talk to other sites about what worked for them and leverage our collective strength."
Te Rapa now has a year-round asset care approach to maintaining and servicing plant.
