increase font size
The news that Fonterra is to hire international consulting firm McKinsey & Co to see what needs to be changed in the organisation is breathtaking.
It seems a lot of people in the co-op are earning a million or more dollars a year, so what don’t such people know and why can’t they fix it themselves? Many were presumably responsible for the co-op’s present structure, so what’s wrong?
McKinsey will for a small fee (yeah, right) propose some sort of change to the structure. But we hope they look beyond structure and truly analyse the culture of Fonterra, which is the greatest source of complaints from many of the people who deal with the dairy giant.
The word arrogance is frequently used to describe the way Fonterra behaves to external stakeholders and farmers. ‘Fortress Fonterra’ is another expression. The co-op’s communication style gets people’s backs up. They seem to assume a God-like position, which does not fit well with the salt-of-the-earth farmers they supposedly represent.
Understandably, some Fonterra suppliers are looking sideways towards other companies to which they could sell their milk. Fonterra’s hold on the milk supply is slipping as companies such as Miraka and others show what can be done. They also offer a closer relationship – a whanau approach – which is very appealing to many.
In its latest Agribusiness Agenda, KPMG suggests that in 10 years Fonterra may control only 70% of the New Zealand milk supply – down from 85% today.
This is not to say Fonterra is bad; in fact it is a great company and NZ Inc. needs a strong Fonterra. But it seems to many that the body corporate has become disconnected from its shareholders. The great work of Fonterra is being undone by poor communications, which is an easy fix. PR spin and new buzzwords such as ‘velocity’ will change nothing and impress no one.
The solution is frequent, timely, honest, simple, straight talk. Surely that’s not too much to ask.
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.
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.
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.
Fonterra has delivered a fifth straight year of record organic milk price for farmer suppliers.
Fonterra says favourable weather conditions supporting pasture growth is boosting milk production.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
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.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
