No backing down
OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.
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.
Commodity prices and interest rates play a huge role in shaping farmer confidence, but these factors are beyond their control, says Federated Farmers dairy chair Richard McIntyre.
DairyNZ is supporting a proposed new learning model for apprenticeships and traineeships that would see training, education, and pastoral care delivered together to provide the best chance of success.
Two agritech companies have joined forces to help eliminate manual entry and save farmer time.
The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of tension in the relationship between China and NZ.
The world is now amid potentially one of the most disruptive periods in world trade for a very long time.
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OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.