Friday, 28 September 2012 16:21

Spierings gets the tick from farmers

Written by 

FONTERRA CHIEF executive Theo Spierings is expected to announce this week that the co-op’s annual revenues have for the first time exceeded $20 billion. The achievement caps Spierings first year at the helm of the co-op. 

While some farmers believe the jury is still out on his performance, the Dutchman has received a tick from the Fonterra Shareholders Council and South Canterbury farmer, Eddie Glass, a fierce critic of TAF (trading among farmers).

 Glass, who spearheaded a campaign to reject TAF, believes Spierings has performed “very well”. “He will go on to do big things for the co-op,” he told Dairy News.

Spierings took over as chief executive in the midst of divisive debate by shareholders of the proposed share trading scheme. In his first few months at the co-op Spierings expressed surprise at shareholders debating TAF in public rather than “keeping it within the family”.

Glass believes Spierings played a key role in the second TAF vote, where 34% of votes were cast again the scheme. “I believe his job had become untenable; he was spending so much time in the politics of TAF.” Glass says Spierings has won his support and he looks forward to “great things from him”.

Fonterra Shareholders Council chairman Ian Brown says while the council has not rated Spierings’ performance, he believes he is on the right track. Spierings earlier this year outlined his strategy refresh for the co-op, focussing on three Vs: volume, value and velocity.

Brown says the strategy refresh will take time but early indications are pointing to a positive outcome. “There is a real positive feeling in the air when you enter the Fonterra offices,” he says.

But not everyone is quick to give Spierings the tick.

Farmers probably haven’t seen enough of Spierings, or the results of his work, to make a call on his performance to date, says Feds Dairy chair Willy Leferink. “He’s been busy restructuring the business and as yet we don’t know if that’s for better or worse.”

However, there are high hopes it will deliver despite commodity market fluctuations, economic difficulties – notably in the US and Europe – and the high New Zealand dollar. “He’s trying to row a boat in a very difficult economic environment,” acknowledges Leferink.

The fact Fonterra will this week probably announce an annual turnover not less than $20 will be quite an achievement, but the big question will be what profit will drop out of that?

“I’ve no idea. Commodities are cheaper now which usually means profit increases and the half-year forecast looked good. I’ve not got super-big expectations but certainly some hope of a good result.”

Leferink says over the year he’s had two face-to-face meetings with the new chief executive, both of them about the Trading Among Farmers issue, which were “quite contentious”. Other than that he hasn’t had a great deal to do with him. Fonterra’s annual results will be announced on Wednesday.

More like this

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

LCAs tackle false narratives

The quest to measure, report and make sense of the energy that goes into food production has come a long way in the past 25 years.

$3b windfall?

Fonterra's proposed sale of its global consumer business could fetch over $3 billion but not all proceeds will end up in the pockets of farmer shareholders.

Featured

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

Editorial: Keep FTAs coming

OPINION: The dairy industry will  be a major beneficiary of a new free trade deal between NZ and the Gulf Co-operation Council (GCC).

National

Organic sector backtracks on GE

Organics Aotearoa New Zealand (OANZ) says the Government’s new gene editing and genetic modification reforms could leave New Zealand as…

$3b windfall?

Fonterra's proposed sale of its global consumer business could fetch over $3 billion but not all proceeds will end up…

Machinery & Products

Milk Sustainability Centre launched

The recently announced Milk Sustainability Centre – a collaboration between global giant John Deere and milking and feed specialists De…

Data connection made easier

New Holland and Case IH are introducing new advancements in their precision technology stack to make farming easier and more…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter