Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
That was the message from Fonterra Shareholders Council chairman James Barron at the co-op’s annual general meeting in Masterton today.
Speaking to about 180 farmers, Barron said, he like many of them, have greatly appreciated the leadership and commitment seen.
“The commitment to keep milk collections happening…. the entire Farm Source team supporting us, our plants operating, and our product being delivered and sold around the world.
“After a period of fairly intense criticism both in the media and by sectors of the general public, many of you told us it has been pleasing to see positive commentary on the importance of the agricultural sector to New Zealand.
“On behalf of our farmers, I would like to thank our Fonterra employees who have worked so hard, with grit, determination and professionalism, to keep our co-op open for business in these unprecedented times and their families who supported them as they did that.”
Barron also told shareholders that the Fonterra board met nine of the Board’s 14 targets in the last financial year: compared to five out of 15 in FY19, and one out of nine in FY18.
Since 2018, the council has also been monitoring average total shareholder return and average return on capital employed, in each case since Fonterra’s formation.
“This reflects the fact that we are all part of an intergenerational co-operative, and as such it is important to incorporate an intergenerational horizon when monitoring performance. We have been reporting these figures to you in our annual reports since 2018.”
