Wednesday, 02 December 2015 09:55

New level of transparency promised – Wilson

Written by  Sudesh Kissun
Fonterra is now an $18 billion global business. Fonterra is now an $18 billion global business.

Fonterra chairman John Wilson says the co-op is providing a new level of transparency to shareholders about the business.

He told the annual meeting in Waitoa last week that it was providing clear reporting on each business – ingredients, consumer and food service and international farming.

Wilson says in any season some parts of the co-op may perform better than others, "just as some farmers are more productive than others on a year-to-year basis".

"We can see clearly where we are doing well and the steps we are taking where performance needs improvements," he says.

"We are enabling shareholders to better understand the business."

Wilson says reporting performance quarterly, as has happened this month, added further to this transparency.

Fonterra is now an $18 billion global business.

TAF (trading among farmers) is now part of the business; ownership and control by shareholders is as strong as ever, as shown by the record voter turnout last week.

Wilson notes Fonterra has stood its ground in the face of competition.

"We produce 85% of the milk in New Zealand, we have a stable milk supply base and our shareholder numbers continue to increase."

During general discussion at the meeting Wilson admitted the co-op had "dropped the ball" in its communications with shareholders. Wilson said that informing farmers earlier this year about new PKE usage limits was one such example.

He says the co-op must get its communications better and this is in the front of mind of management.

Former King Country MP Shane Ardern told the meeting that the co-op was unable to take stakeholders along on its strategy "in these turbulent times".

"We definitely have communication issues," Ardern told the meeting. "We have to do better in our public relations department."

More like this

Featured

Editorial: Indian FTA is great news

OPINION: Trade Minister Todd McClay and the trade negotiator in government have presented Kiwis with an amazing gift for 2026 - a long awaited and critical free trade deal with India.

National

Machinery & Products

» Latest Print Issues Online

The Hound

The bow-tie effect

OPINION: If the hand-wringing, cravat and bow-tie wearing commentariat of a left-leaning persuasion had any influence on global markets, we'd…

Famous last words

OPINION: With Winston Peters playing politics with the PM's Indian FTA, all eyes will be on Labour who have the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter