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.
One dairy insider, speaking on condition of anonymity, says Cronin is "a very sound man" with legal background.
Cronin will lead a team responsible for enhancing and protecting Fonterra's brand and reputation – including governance and legal, health and safety, food safety and quality, brand, social responsibility and communications, and stakeholder affairs.
His appointment comes amid media speculation on the future of chief executive Theo Spierings. The co-op has denied reports Spierings is preparing to step down, to be replaced by Air New Zealand chief executive Christopher Luxon.
The dairy insider says "communication faux pas" have been made on Spierings' watch, notably the move to curb PKE use on farm and how this was communicated to farmers.
Farmers are facing their third season of below average payout; and some are not happy with the way they have been treated by Fonterra.
Having executive management team members who don't speak English as their first language has also been a communication challenge to shareholders.
Announcing Cronin's appointment, Spierings says his connection with the business and its risk and reputation drivers, make him the natural choice for the role.
"Mike has extensive experience in corporate risk and reputation management, and providing trusted strategic counsel to the cooperative. He has in-depth understanding of New Zealand and the cooperative, and the internal and external dynamics of our business.
The co-op has also appointed Joanne Fair, currently Fonterra's regional director ingredients SE Asia, as managing director people and culture, effective July 1, 2016.
Spierings says Fair is ideally placed to lead the cooperative's people and culture team. She has a strong background and expertise in human resources and has held global and regional commercial leadership roles, having worked with Fonterra in NZ, Latin America, Europe and South East Asia.
Up she goes
The first GDT auction for the season saw a 3.4% rise in the price index. However, the flagship whole milk powder price dropped 1.7% to US2200/tonne.
Skim milk powder was a big winner, rising 12% to US$1867/tonne. Cheddar prices rose 7.8% to US$2669/t.
