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.
Farm Source group director Anne Douglas says the co-operative knows how important that support is to farmers.
In an update to farmers today, Douglas says the changes focus on three things - improving local support, improving phone and digital tools to make things easier, and ensuring the co-op is doing everything it can to maintain, and grow, sustainable milk supply.
“We want to provide a wider range of ways that you can connect with your co-op.
“And then no matter which one you choose, depending on your preferences and needs, we aim to enhance that connection.”
The co-op is introducing three new roles to on the ground teams: regional managers, co-operative services area managers and farmer support advisors.
Once the regional manager roles have been appointed in the coming weeks, they will get in touch with farmers to introduce themselves and the members of their team, Douglas says.
The new structure is set to be in place from 1 August 2023, but Douglas notes that positions may still be filled after that date.
The revamp will lead to some Farm Source staff being left without roles: Fonterra is working with them to investigate new opportunities within Farm Source or other parts of the co-op.
“We don’t take decisions related to our team’s roles lightly and we know that change can be unsettling.
“Supporting our people through this conversation has been and will continue to be a top priority.”
Some Fonterra farmers expressed unease at loss of face-to-face contact with Farm Source field staff. Fonterra Co-operative Council and board members fielded calls from farmers on the issue.
Douglas says they have listened and gone through a genuine consultation directly with the team, including time to consider everyone’s views. “Significant adjustments have been made to our original proposal based on that feedback, and I believe we’ve got to a much better position as a result of the consultation.
“We needed to ensure our people heard about potential changes from us first and had an opportunity to contribute to the changes before anything was confirmed, which is why we haven’t been able to provide further details until now.”
Douglas also thanked farmers who contacted her directly to share their thoughts.
“I assure you that we’ve read and considered every message or email that has come through from our farmers.”
