Fonterra updates earnings
Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.
This is understandable, given that the Spierings era at the dairy co-operative isn't remembered fondly by many Fonterra farmer shareholders. As the saying goes, "If you don't have something nice to say, don't say anything at all".
The 60-year-old Dutch dairy executive's seven-year stint at Fonterra has everything: a false botulism scare involving whey protein concentrate that led to a global recall of infant formula and other milk products; two consecutive years of sub-$5/kgMS payouts; an ambitious plan to establish global milk pools that failed to deliver shareholder returns; the launch of Fonterra Milk for Schools scheme; not to mention criticism of his exorbitant pay packet.
Spierings' multi-million-dollar salary package, which had climebed to $8.3m in the 2016/17 financial year, just prior to his 2018 departure, raised eyebrows at a time when farmer shareholders were struggling to stay afloat and the co-op was losing money and laying off workers. In the end, Spierings quietly left New Zealand and went on to establish The Purpose Factory - a Dutch-based foundation and consultancy focused on global sustainable development goals and business transformation and innovation.
A statement from that company says Spierings died unexpectedly on Saturday, October 19 in the Netherlands after a brief illness. His legacy, and the impact he had on those he worked with and who knew him, will be remembered fondly, the statement says.
Former Federated Farmers dairy chair and Ashburton farmer Willy Leferink says that it's sad to see a man pass away at his age.
"My condolences to his family. In another time he would have probably been the right man for Fonterra," Leferink told Dairy News.
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"He'll be remembered for spending a lot of money on policies that in hindsight may not have been the best ones at the time. Luck was not on his side when the EU ditched milk quotas and opened the production taps which made the world awash with milk products. He also had to deal with some massive contamination issues, which caused him probably sleepless nights."
Current Feds dairy chair Richard McIntyre says he was also saddened by Spierings' passing.
"He was at the helm of Fonterra during a difficult period of change and low milk prices," McIntyre told Dairy News.
"He contributed a huge amount to the dairy sector internationally."
The Purpose Factory statement notes that Spierings had more than 30 years' experience in the dairy industry, including as acting CEO of the Dutch Royal Friesland Foods dairy co-operative, chair of the Global Dairy Platform and CEO of Fonterra.
Fonterra didn't have much to say on Spierings' passing either.
"We're saddened to learn that Theo Spierings has passed. Our thoughts are with his family at this difficult time," a spokesman told Dairy News.
One former director was more forthright, telling Dairy News that he would rather not comment, before adding "he was an incompetent CEO in my opinion and his errors of judgement cost farmers billions".
However, on social media former Fonterra executives had good words for Spierings.
One recalled that he turned up in 2011 and questioned why Fonterra didn't have a sustainability report, at a time when only a handful of NZ companies were producing such reports.
“He, just quietly, appointed many women to senior roles within Fonterra. He brought in training on how to draw on your personal story to be an effective storyteller and leader. He talked to you with energy and passion, expectation and belief. You sought to rise to the occasion.”
Another credited Spierings for the Fonterra Milk for Schools programme.
“He provided many of us with the privilege to be part of the development, launch and success of Fonterra Milk for Schools. He deeply cared for children’s nutrition and enabling another way for Fonterra farmers to contribute to their communities and the health of our future.”
A former member of his executive team noted that he was a good man “who I was proud to work for”.
“He brought much to a young and complex Fonterra. His legacy is much more than is publicly remembered. I will miss him.”
