What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
In April last year, only 16% of New Zealanders surveyed had a favourable view of the co-op; 35% had an unfavourable view.
By December, the co-op had turned this around; 29% viewed the co-op favourably and 16% unfavourably.
Fonterra managing director corporate affairs Mike Cronin told the NZ Cooperative leaders’ forum in Auckland last week that the each percentage represented about 40,000 people.
“So 1.2 million people think positive of us now,” he says.
Cronin says while the co-op is pleased with change in public perception, more work needs to be done.
The co-op used former All Blacks captain Richie McCaw in the ‘4.31am advertising campaign’. Fronted by McCaw the ads focus on five topics that farmers want the wider public to better understand.
Cronin says Fonterra farmers want more New Zealanders to know their story.
“They want New Zealanders to be as proud of the co-op as they are.”
Cronin says Fonterra has spent the past three years building better foundations through its community projects – like Milk for Schools and environment initiatives and partnerships.
“Our reputation in New Zealand was unsustainably low and we know we need New Zealanders support to operate.
“We are not understood by New Zealanders; building reputation builds farmer and staff pride and productivity.”
