Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
In an update, Fonterra chief executive Theo Spierings says the consultation is being conducted globally starting with its procurement, finance, information services, human resources, strategy and legal functions. Other parts of the business will follow in the coming months.
The purpose of the review is to ensure that the company is best placed to respond to a rapidly changing global environment, says Spierings.
The initial phases of the process have looked at the entire business in detail and had identified potential areas, including significant initiatives in procurement, business operations and working capital, where the Co-operative can unlock increased value for its owners.
The cooperative’s leadership is now building these opportunities into defined plans that will drive further improvement across the business, allowing Fonterra to fund its growth strategy and deliver stronger results says Spierings.
“We have the right strategy and the long-term future of dairy is sound, however the world is changing and global dairy markets are increasingly volatile. To keep ahead of the game, we need to be more agile, reduce costs and generate value,” says Spierings.
Fonterra will provide an update on the impact to its business structures following completion of consultation, which is expected later in July.
