Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Fonterra is looking at reducing the size of its board.
In an email to farmer shareholders, Fonterra chair Peter McBride recommends reducing the board size from 11 to nine.
However, farmer shareholders will remain in control of the board. The current balance between farmer elected and appointed directors would be maintained - with a composition of six farmer elected directors and three appointed directors.
“As is the case today, the chairman would still be selected from within the pool of farmer elected directors,” says McBride.
The proposal is being discussed with Fonterra Co-operative Council and board members will brief shareholders during a round of farmer meetings later this month. A vote will be taken at the co-op’s annual general meeting in November.
McBride says as part of earlier governance and representation reviews, a commitment was made to review the board size and composition in 2024.
“Since the co-op’s formation it has been envisaged that the board size would be rationalised over time.
“With the capital structure review, asset divestment programme and long-term strategy work largely behind us, the board believes it is the right time to review its size and
composition.”
The Fonterra board believes the co-op’s priorities for the coming years could be more efficiently delivered by a smaller board.
“My personal experience leading or being part of leadership groups is that in smaller groups people are more engaged and able to share their perspectives in a more meaningful way,” says McBride.
“Smaller groups encourage greater sharing of dissenting ideas and opinions – which is a good thing – and are proven to support faster, robust decision making.
“Having now been part of the co-op’s board for five years, the last three as chair, I’m confident that reducing the size of our board will improve the dynamics withing the group, encouraging greater participation from directors, and maintaining access to the necessary skills and experience to govern the co-op into the future.”
He points out that when thinking about the right size of the board, that balance is important.
“We want to increase efficiency and avoid ‘group think’ whilst retaining an appropriate level of skills and capabilities, as defined by our board skills matrix.”
Prime Minister Christopher Luxon says the relationship between New Zealand and the US will remain strong and enduring irrespective of changing administrations.
More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.
The a2 Milk Company (a2MC) says securing more China label registrations and developing its own nutritional manufacturing capability are high on its agenda.
Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.
As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.
Livestock can be bred for lower methane emissions while also improving productivity at a rate greater than what the industry is currently achieving, research has shown.
OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.
OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.