Tuesday, 26 May 2020 10:03

Fonterra’s big break

Written by  Sudesh Kissun
“Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well,” says Sir Henry van der Heyden. “Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well,” says Sir Henry van der Heyden.

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

He says the co-op is a great global player with solid customer networks and supply chains.

“Right now these supply chains are stretched in terms of shipping and containers.

“Their relationship with everyone in supply chains – the customer and ultimately the consumer is their strength – I think that’s going to come to the fore.”

Van der Heyden, who served as Fonterra chair from 2002 to 2012, was speaking at a webinar organised by the Rural Support Trust.

After stepping down from Fonterra, van der Heyden has served on high profile company boards. He is currently chairman of Rabobank Australia. Van der Heyden has dairy farming interests in New Zealand and Chile.

So far, Fonterra has come out of the COVID-19 largely unscathed, announcing a $300 million lift in third quarter gross profits.

The co-op says it drawing on its global supply chain and diverse product and customer base to minimise disruptions.

Van der Heyden says Fonterra will stand out even more post-COVID-19 as a global player.

“I think what they stand for will be reinforced.

“Right now customer and supply chain management are very important for global players and that’s something that Fonterra does very well.”

Van der Heyden also spoke about the New Zealand agriculture sector coming out of COVID-19 with well-earned respect. “I think coming out of COVID, the country has realised how important agriculture is from an economic sense.”

He said farmers felt like “lepers” over the last three to four years, even reluctant to tell people that they worked on the land because they were looked down upon.

“Post COVID, the country is realising that they need agriculture, they need cash flows and they need exports.”

At the same time, farmers must farm within environmental limits.

Van der Heyden says he doesn’t know of any farmer who doesn’t worry about environment and sustainability.

 But he wants a balance to be found. Farmers need time to change their farming systems and everyone needs to work together to set environmental targets and find solutions.

More like this

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Featured

Indian PM Set To Make A Fleeting Visit

With the New Zealand/India Free Trade Agreement (FTA) dominating political debate here, India Prime Minister Narendra Modi will be visiting New Zealand next week.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Taking On Winnie

OPINION: No one messes around with Winston Peters, more so in a general election year.

Full of Surprises

OPINION: Staying on Federated Farmers, this week's annual general meeting in Auckland is shaping up to be an interesting one.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter