increase font size
Marc Rivers says Fonterra's annual results make all the blood, sweat and tears of the last five years worth it.
Fonterra's departing chief financial officer Marc Rivers says delivering the co-op's annual results for the final time made for an emotional day.
There were mixed feelings: proud to be delivering a great result and sad that he will miss out on the next chapter in the co-op's journey.
Rivers, who stepped down from the role on September 30, will bid farewell to Fonterra's farmer shareholders at the co-op's annual meeting in Rotorua next month.
Rivers joined Fonterra in 2018, the year in which the co-op posted its first financial loss.
With Rivers at his side, then interim chief executive Miles Hurrell announced a major review of overseas assets and partnerships.
The co-op decided to focus on extracting value rather than pursue volume and put the focus back on its New Zealand milk pool. Two years later the co-op was back in the black. Last month the co-op announced a net profit of $583 million for the last financial year, on the back of revenues totalling $23.4 billion.
Rivers says he is proud of the results.
"It makes all the blood, sweat and tears of the last five years worth it - that's what it's all about," he told Dairy News.
He agrees that turning the co-operative around was quite a journey.
"Where we started, the difficulties we faced at the beginning, and then to see the first fruits of the new strategy and direction emerge," he says.
Rivers believes the co-operative is on the cusp of a new and exciting chapter.
"The next chapter is really bright and will be exciting for Fonterra. I guess I will be cheering from the sidelines."
Rivers believes that, after the 2018 results, it was clear that Fonterra had to change and everyone could see that.
As the CFO, Rivers had direct interactions with key customers from the around the globe.
He confirms that the co-operative has a great reputation overseas.
"I know from my direct interaction with global customers like Nestle. They really admire what the NZ farmer has done, in a quite entrepreneurial way and on their own.
"They have built up an amazing industry."
Fonterra is also one of the world's biggest exporters of dairy products, reaching out to as many countries as they are able to from a trade perspective.
Rivers says customers admire the technology and innovation achieved by Fonterra on proteins and products like mozzarella cheese.
The co-op's ability to deliver products to global customers during the pandemic was also much appreciated.
"Our supply chain reliability through a very disruptive period enhanced our reputation. Kotahi has been very valuable."
Rivers believes Fonterra's optimised manufacturing footprint, allowing it to divert milk into anything it needs to and responds to customer signals, was also highly valued.
Also setting Fonterra apart from other dairy producers is its sustainability story.
"We produce milk in a beautiful way. Our grass-based system is the lowest carbon way of producing that form of nutrition.
"That doesn't mean that we stand still, we have to keep getting better at that."
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
