Tuesday, 26 May 2020 10:03

Fonterra’s big break

Written by  Sudesh Kissun
“Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well,” says Sir Henry van der Heyden. “Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well,” says Sir Henry van der Heyden.

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

He says the co-op is a great global player with solid customer networks and supply chains.

“Right now these supply chains are stretched in terms of shipping and containers.

“Their relationship with everyone in supply chains – the customer and ultimately the consumer is their strength – I think that’s going to come to the fore.”

Van der Heyden, who served as Fonterra chair from 2002 to 2012, was speaking at a webinar organised by the Rural Support Trust.

After stepping down from Fonterra, van der Heyden has served on high profile company boards. He is currently chairman of Rabobank Australia. Van der Heyden has dairy farming interests in New Zealand and Chile.

So far, Fonterra has come out of the COVID-19 largely unscathed, announcing a $300 million lift in third quarter gross profits.

The co-op says it drawing on its global supply chain and diverse product and customer base to minimise disruptions.

Van der Heyden says Fonterra will stand out even more post-COVID-19 as a global player.

“I think what they stand for will be reinforced.

“Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well.”

Van der Heyden also spoke about the New Zealand agriculture sector coming out of COVID-19 with well-earned respect. “I think coming out of COVID, the country has realised how important agriculture is from an economic sense.”

He said farmers felt like “lepers” over the last three to four years, even reluctant to tell people that they worked on the land because they were looked down upon.

“Post COVID, the country is realising that they need agriculture, they need cash flows and they need exports.”

At the same time, farmers must farm within environmental limits.

Van der Heyden says he doesn’t know of any farmer who doesn’t worry about environment and sustainability.

 But he wants a balance to be found. Farmers need time to change their farming systems and everyone needs to work together to set environmental targets and find solutions.

More like this

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.

A great outcome - Hurrell

Fonterra chief executive Miles Hurrell says the sale of the co-op’s consumer and associated businesses to Lactalis represents a great outcome for the co-op.

Featured

Hort industry dishes out awards

Research and healthcare initiatives, leadership and dedication to the sector have been recognised in the 2025 Horticulture Industry Awards.

Manuka honey trader posts sour results

Manuka honey trader Comvita slumped to a $104 million net loss last financial year, reflecting prolonged market disruption, oversupply and pricing volatility.

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

Milking It

Dreams aren't plans

OPINION: Milking It reckons if you're National, looking at recent polls, the dream scenario is that the elusive economic recovery…

Fatberg

OPINION: Sydney has a $12 million milk disposal problem.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter