Two Major NZ Dairy Deals Completed
Two major acquisitions in the New Zealand dairy sector were completed this week.
Here are their brief profiles:
Donna Smit
The Fonterra independent selection panel notes that Smit has in-depth dairy farming experience. She has built and owns seven dairy farms in Edgecumbe and Oamaru with around 3500 cows (Corona Farms Ltd).
She lives on one of the farms and shows she has strong financial expertise and understands the value drivers of milk price and profit.
A chartered accountant by training, Smit handles financials for all the family businesses; she was company administrator at EastPack Ltd for 24 years, a kiwifruit co-op now the largest postharvest operator in the industry, processing at least 25% of the national kiwifruit crop. She helped manage through the Psa crisis in the kiwifruit industry.
The panel says Smit shows she understands capital and share structures, and “demonstrated a good understanding of the international risks and opportunities for Fonterra”.
“While Donna has not run a business as chief executive, the panel felt her close working relationship with the chief executive and board while at EastPack was relevant to her understanding of how businesses operate. She had a broad financial, legal and IT role there.”
Michael Spaans
The panel noted Spaans has in-depth dairy farming experience and expertise and he understands the value drivers of milk price/profit.
A self-employed dairy farmer for 30 years, he lives on a 500 cow farm in Te Aroha; family business also includes farming interests in Canterbury, Chile and Missouri.
Spaans is co-chair of the Fonterra Farming Group (international farming in China, Chile, NZ). He understands global dairy trade.
He has been a Fonterra director for the last three years and sits on the milk price panel. He is currently the chairman of Dairy NZ, where he has been a director for eight years. He served on the Shareholders Council for eight years and the board of Manuka SA, a Chilean farming venture, for six years. He is a director of ASB Bank and has been chairman of Waikato Innovation Park Ltd.
The committee says Spaans shows he understands the value of the consumer business globally to Fonterra and value creation for the co-op.
Stuart Nattrass
Nattrass opted for self-nomination.
He says having served as a Fonterra director between 2003 and 2009, he appreciates the time, effort and commitment required in the role.
“Those six years were a time when capital structure was the main topic of discussion. In the many meetings I participated in, I believe my understanding and empathy with the cooperative was always demonstrated. I gained a thorough comprehension of the unique framework Fonterra operates under through the work I was involved with for the development of GDT.
“This helped establish an international price for milk and more importantly a transparent price for Fonterra farmers’ milk.
“I have governance experience in food safety, farming, importing, plumbing, finance, e-commerce, irrigation, farm services, mining, tourism and horticulture.
“A career in international finance meant I was a student of the world and its affairs at the time (mid 1980s) when capital markets and goods and services markets were starting to be liberated.
“Globalisation and free trade in particular is trending in the right direction, but I feel it is under threat.
“Governance is judgement exercised in an environment of trust. Good judgement is preceded by experience, which I have in abundance. I can’t claim I have always exercised good judgement. I can claim that on the occasions I haven’t, I have always faced my responsibilities.”
Nattrass says for Fonterra to achieve its full potential the owners must take personal responsibility for appointing the directors.
“I am pleased to stand as a farmer-nominated candidate as it gives you an opportunity to express your own choice.”
