increase font size
Damien O'Conner.
Spin and corporate drivel are not the way to connect with dairy farmers who are going through tough times.
That’s the message from Labour primary industries spokesman Damien O’Connor. He was responding to news that Fonterra may shed upwards of 1500 jobs in a restructure, and to the financial problems facing dairy farmers because of the low pay-out and more hard times ahead.
O’Connor says many farmers are concerned about the performance of Fonterra, its problems, and some of the decisions taken by its chief executive Theo Spierings.
“I suggest Theo voluntarily cut his salary in half as an acknowledgement of his commitment to get Fonterra into a better place.
“The company can’t afford to have farmers who want to leave and… staff who will have to leave.
“The feedback I am getting from across the industry is that there is a growing level of frustration about Fonterra. Farmers are taking a big cut and that’s why I’m asking Theo to share their challenge to get through this. It’s not tokenism, but a genuine commitment to acknowledge the pressure they are all under.”
O’Connor says it’s important the chief executive of Fonterra has his management team and staff behind him and that he has the support of farmers. But the staff, though loyal, must be very unsettled.
He says for Fonterra to work through this challenging time will require absolute commitment from all staff, which he cannot see given the cloud of redundancy over them.
“Farmers can accept the fluctuating payouts if they have faith in the company doing the right thing. This is a very complex company that has a huge challenge.
“If Fonterra can’t explain that in clear terms to their farmer owners and suppliers then they are in trouble and I think that is where we are at. The communication with farmer suppliers seems to be a consistent issue.”
O’Connor says he’s an absolute supporter of Fonterra and says his comments are intended to support farmers and to encourage Fonterra to succeed.
No link to milk price
Dairy News sought comment from Fonterra about Damien O’Connor’s request for Theo Spiering to take a 50% cut in his salary. We got a written response attributed to managing director people, culture and strategy, Maury Leyland.
She says to ensure Fonterra remains competitive in the market, its pay bands are based on industry standards obtained from independent remuneration consultants.
“Fonterra’s pay bands have never been linked to the milk price. However, short and long term incentive plans can be linked to the cooperative’s financial performance.
“We recognise that we have not met our farmer shareholders’ or investors’ expectations and that we need to significantly step up our performance. That is why Fonterra is undertaking a business review to identify areas where we can accelerate our strategy and improve performance.”
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.
OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…
