Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The co-op is moving from two large central businesses (ingredients, and consumer and foodservice) to three in-market customer facing sales and marketing business units: Asia Pacific (APAC), Greater China (GC), and Africa, Middle East, Europe, North Asia, Americas (AMENA).
Judith Swales will head the APAC business and Kelvin Wickham AMENA. Marc Rivers will remain chief financial officer, Deborah Capill managing director people and Mark Cronin managing director cooperative affairs.
The chief operating office global operations, Rob Spurway, will leave the co-op.
Hurrell is also creating a new management role of chief operating officer. Recruitment is underway for the China chief executive officer and chief operating officer roles.
Hurrell say Fonterra needs an organisational structure that “allows us to live within our means, create better connections with our customers, and create value by focusing on what we are good at and where we can differentiate ourselves.
“The structure encourages us to work together as one team.
“We are also looking at ways to prioritise activities and increase efficiency for our central support functions, ensuring they add direct value to our co-op.”
Hurrell says Spurway will leave Fonterra after an eight-year stint.
“He has been a huge contributor to the ongoing strength and performance of our NZMP Ingredients business and has set the platform for continued success through innovative technologies, a team of highly capable people and significant progress on sustainability across our manufacturing operations -- all central to our strategy.”
Over the next few months, Spurway will help transition global operations to the new operating model and will work with the Greater China leadership team to implement a new Greater China regional go-to-market model.
