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.
Environmental restrictions ar impacting on how much more land the dairy industry could occupy. Dairy conversions have dried off while the amount of dairy land is also shrinking. Some farmers had converted land from dairying to forestry or horticulture, or in some cases housing or even solar farms.
So, with new milk processing plants still being built in NZ's dairy heartland, what does this mean? It means older, inefficient plans may be forced to shut down. And with Fonterra owning the most number of old plants in the country, this scenario doesn't bode well for the co-operative.
