Wednesday, 24 October 2018 09:55

Fonterra urged to focus on returns

Written by  Sudesh Kissun
Jamie Tuuta. Jamie Tuuta.

Māori agribusiness leader Jamie Tuuta says Fonterra farmer shareholders would be disappointed with the performance of the co-op.

He says the lower share price has impacted farmer balance sheets. 

“Given the level of farmer debt the board must focus on milk price, share value and dividend. Farmers have a lot of capital tied up in our cooperative and we must perform better,” he told Rural News.

Tuuta is one of five candidates vying for three Fonterra board seats; voting started last week and ends on November 6.

Other contenders are sitting director Ashley Waugh, former director Leonie Guiney, Zespri chairman Peter McBride and Canterbury large-scale farmer John Nicholls.

Tuuta, McBride and Waugh have been endorsed by Fonterra’s board and shareholders council.

Fonterra lost $196 million in 2017-18 in a $405m write down of its investment in the Chinese baby food company Beingmate.

The co-op is reviewing its strategy and investments, something Tuuta supports.

“It is important in light of the recent result that the board reviews its current portfolio and assesses the merits and demerits of each investment given the scarce capital and disappointing performance,” he says.

Tuuta is a shareholder and former chair of Parininihi ki Waitotara, a large Māori-owned farming venture in Taranaki.

“In that regard Fonterra and the dairy industry are a major part of the Taranaki economy but also the success of PKW to advance our aspirations,” he says.

“We want Fonterra to be successful; if Fonterra is successful and performs we also benefit.”

Tuuta completed the Fonterra Governance Development Programme in 2010.

He is also the Māori trustee, managing 100,000ha of Māori freehold land operating as dairy farms and leased out as dairy and dairy grazing land.

“I have a solid understanding of dairy farming and the value drivers of milk price,” he says.

Tuuta says he was encouraged by many shareholders to consider standing.

“I’m standing because I believe I have the skills and qualities to complement the existing capabilities of the board to add value.  Like all other shareholders I want Fonterra to be successful and believe strong leadership and governance capability is required.”

Tuuta’s governance career includes former directorships of Tuiora Ltd, Taranaki Investment Management Ltd, Wools of New Zealand and the lobster export business Port Nicholson Fisheries Ltd. 

He was a member of the Government-appointed investment advisory panel for the Primary Growth Partnership. And has been part of the Te Hono Steering Group since its inception, giving primary sector leaders exposure to emerging trends and Stanford University higher education.

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter