For the country’s two largest milk processors, it’s business as usual: milk is coming in, being processed and products shipped to offshore markets without any major hitch.
After years of rubber stamping strategy and executive performance now revealed as fairly average, the council has earned a reputation as being more lapdog than watchdog. Concerned shareholders now want answers.
They have put a resolution for the Fonterra annual meeting demanding an independent review of the council, to be completed mid-2020 with any constitutional changes tabled at the 2020 annual meeting.
Crucially, they don’t want another internal whitewash review: they rightly say it must be independent. Milking It has long held doubts about the council’s independence, given it is a proven gateway to plum board positions within the Fonterra network.
Off the back of a $605 million loss this review is a no-brainer. The watchdog has been caught napping on the job.