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Confirmation of Miles Hurrell as chief executive would be a step in the right direction.
OPINION: Fonterra shareholders are starting 2019 with high expectations.
Most farmers’ New Year resolution will be to continue producing milk sustainably and efficiently in the hope that global milk prices will firm.
However, looming large on their minds will be the state of their cooperative; the bottom line is Fonterra cannot afford to lose money this year after its $196 million loss in 2018 – its first ever.
Frustrated farmers have watched the board and management fail to contain the co-op’s disastrous foray into China Farms and Beingmate Food.
At home, Fonterra is losing milk supply to rivals and continues to play second fiddle to smaller processors when it comes to the milk payout battle. Thus, farmer shareholders seeking real change in their co-op focussed intently on last year’s board elections.
In what could be best described as a slap in the face to both the board and shareholders council, farmers rejected two of their three nominees for directorship.
The first director election saw shareholders back the board and council’s choice, Peter McBride, a respected agribusiness leader. However, they rejected the other two official nominees; sitting director Ashley Waugh and Maori agribusiness leader Jamie Tuuta.
Instead farmer shareholders voted in outspoken former director Leonie Guiney. In the second election, Canterbury farmer John Nicholls beat Tuuta for the third seat.
Fonterra shareholders have realised that change must start with the board; the old boys club from the early days of Fonterra’s formation needs to go. Current chairman John Monaghan, on the board since 2008, isn’t exactly the breath of fresh air that the co-op needs.
Shareholders may want a new chair with strong leadership skills, alongside a revitalised and broadened board with a more disciplined and collaborative culture.
A re-look at the director election process would also restore some confidence among shareholders on governance.
There are some signs that Fonterra is changing. Confirmation of Miles Hurrell as chief executive would be a step in the right direction. New auditors will be in place at the co-op next year.
A review of the co-op’s assets is underway and shareholders can expect Beingmate and other non-performing assets to go. Fonterra is not out of the woods, but farmers will be hoping that 2019 won’t be bad as last year.
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
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