Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
New Fonterra shareholders council chairman James Barron says farmers are facing a raft of challenges.
But this isn’t the first time farmers have been under the pump, he says.
“We always have been able to overcome these challenges: this time is no different,” he told Dairy News.
He says the challenges provide “a massive opportunity” for Fonterra farmer shareholders to work together and get through them.
Changes to the Dairy Industry Restructuring Act (DIRA) concern a lot of Fonterra farmers: most remain unhappy about having to supply milk to competitors at a subsidised price.
Farmers are also facing new regulations on freshwater and carbon emissions. Barron says consumer expectations and preferences are also changing, faster than ever before. And rural banking is also changing.
On Fonterra’s performance, he admits that its financial performance has been unsatisfactory.
But the co-op is doing many good things.
“Fonterra is providing me with a farm environment plan, it picks up milk every day and makes timely payment for it. It also supports me through the Farm Source model.
“And to top it all off, it maximises the price paid for my milk.”
On the council’s performance, Barron says all the recommendations of a governance and representation review in 2016 are in place.
The council has also changed the way it does things. For example, it now has communications designed for younger farmers and future shareholders.
And as shareholders have requested, the council now has more focus on its roles and functions outlined in Fonterra’s Constitution. Face-to-face engagements with shareholders have increased in the last 12 months and its annual conference is now open to more shareholders.
Barron says the council has also reviewed the way it collects and collates farmers’ views.
“So, we are continually looking to improve the way we do things. There’s no perfect state. As long as we all try to improve I think that’s the right space to be in.”
Penske Australia & New Zealand has appointed Stephen Kelly as the general manager of its Penske NZ operations, effective immediately In this role he will oversee all NZ branch operations, including energy solutions, mining, commercial vehicles, defence, marine, and rail, while continuing to be based at Penske’s Christchurch branch.
According to the latest Federated Farmers-Rabobank Farm Remuneration Report, released today, farm worker pay growth has levelled off after a post-Covid period of rapid growth.
The Climate Change Commission has recommended maintaining the current New Zealand Emissions Trading System (NZ ETS) settings but warns of a potential unit shortfall as early as 2028.
The Conservative Party warns that the upcoming free trade agreement between New Zealand and India may prioritise increased labour mobility while offering limited reassurance for New Zealand workers.
Southland District Council says it is actively managing the impacts of the current fuel supply challenges to ensure essential services across the district continue to operate safely and reliably.
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