Editorial: Well Done, Miles!
OPINION: In 2018, when Fonterra’s board tapped Miles Hurrell to step in as interim chief executive, the co-operative was in the doldrums.
Van der Heyden’s final act as a Fonterra director will be at Tokoroa, where he was first elected a director of NZ Dairy Group in September 1992, where local farmers will farewell him at a function on May 29.
Van der Heyden attended his final board meeting at Fonterra last week. He served as Fonterra chairman for 10 years and stepped down in December last year.
He says a lot has been achieved during his involvement in dairy industry governance – the consolidation of dairy companies in the 1990s, the formation of Fonterra in 2011 and the launch of TAF to remove the co-op’s redemption risk. “I think Fonterra is in a much better shape today,” he told Rural News.
Van der Heyden, who remains a Fonterra shareholder via his family farming interests in Putaruru, believes it will remain a strong farmer-owned co-op for the next few generations at least. “There is a strong cooperative ethos in Fonterra. The new chairman and chief executive fundamentally agree with the co-op status.”
TAF, which allows investors to buy units in Fonterra shares, has been van der Heyden’s signature achievement. But some Fonterra shareholders strongly opposed ceding control of share units to outside investors.
Under TAF, unit prices in Fonterra shares have topped $8 after being launched at $5.50 late last year. Some farmers complain the high share price makes it difficult for them to buy shares to match increased milk production.
Van der Heyden is urging patience. “Let’s wait and see. It’s still early days,” he says. “Fonterra now has a solid foundation to pursue its growth strategy. This wasn’t possible with capital washing in and out of the co-op.”
Van der Heyden last week addressed 500 shareholders at its annual networkers’ conference in Hamilton. He stressed that Fonterra’s future is cemented in strong governance.
“I told them when I started out 21 years ago; I did not know what governance was. I joined NZDG at a young age and there was a lot to learn. Most of those at the network conference know more about governance than I knew 21 years ago.”
He urged young Fonterra farmers to be part of “this special co-op – to become actively involved and committed to Fonterra.”
“I’m Fonterra through and through. Nothing’s going to change that.”
