Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
However, the co-op's top number cruncher abruptly departed last week, leaving shareholders puzzled. Fonterra chair Peter McBride will face questions around Beaumont's sudden departure at the AGM in Methven on Thursday (November 9).
Last week, the co-operative issued a statement to the NZ Stock Exchange, stating that Beaumont was leaving the co-operative and that his last day would be November 3.
No reason was given for his departure. Pointedly, Fonterra's statement had neither any appreciation for Beaumont's nine-month stint nor good wishes for the future.
Fonterra Co-operative Council, a watchdog holding the baord to account on behalf of shareholders, is "very surprised" by the announcement.
Council chair John Stevenson says councillors have received "plenty of questions" from farmers looking for more information. Many shareholders are speculating on the reasons for the short tenure within a senior executive position, he says.
"The council has no insight into the reasons for his departure," Stevenson told Rural News.
"The direction of our co-operative is positive. We are coming off the back of some strong financial results. Farmers will be looking for reassurance that this disruption does not affect the direction of travel."
Stevenson says the council will be asking questions of the board on behalf of its members.
Fonterra shareholder and Kaikohe farmer Richard Dampney, who has submitted four remits for the AGM this week on board representation, says he's keen to know why Beaumont lasted only nine months in the job. Dampney intends to question McBride and chief executive Miles Hurrell on Thursday.
"This has come out of the blue and, like me, shareholders are keen to know what happened," he told Rural News. "Did we pick the wrong man and did we force him to go?"
Another Fonterra shareholder Garry Reymer says the CFO's departure isn't a good look for the co-op.
"It's a concern: I note that in the shareholder council report they talk of the need for more transparency from the board," Reymer told Rural News.
"They also note the declining shareholder trust in Fonterra. This sort of thing will only increase the concerns in the shareholder base."
Simon Till, Fonterra's director capital markets, will act as CFO while the recruitment process is underway, the co-op told NZX.
