Wednesday, 12 August 2015 12:29

Job losses ‘not linked’ to payout woes

Written by 

Recent job losses announced by Fonterra aren’t linked to the low milk price faced by farmers.

Fonterra Shareholders Council chairman Duncan Coull says the co-op signalled to shareholders in May that this was happening as part of a longer term plan.

“Contrary to some commentary, we don’t feel this is a reaction to a low milk price. It’s about becoming more efficient and agile in the way Fonterra conducts its business.”

The co-op last month said 523 staff would leave this month, and more job losses are on the cards.

Coull agrees there is a personal cost for employees. “In my interaction with employees, I know many are passionate about working in Fonterra; we need to be respectful of that personal cost to them and ensure they get the support required.”

Lift Performance

Fonterra is on notice from shareholders to improve its performance, says Coull.

He says shareholders will need to work with the board and management to ensure this happens.

Fonterra’s performance is based on two things: the milk price and the dividend from its value added business, Coull says. “It’s well documented by council that Fonterra’s performance needs to improve. It is highly critical in a year such as this that the strengths
of the co-op shine through and we see the full benefits of vertical integration.”

Coull says the Australian business remains an issue for the co-op. “Fonterra has been reasonably transparent about its Australian business which is good. We have told the board we would like to see clear pathways to resolving those issues.”

More like this

Fonterra back in the black

Fonterra farmers are happy with the co-op’s solid turnaround in performance, says Shareholders Council chairman James Barron.


Winning comes easy

The 2020 Hawkes Bay/Wairarapa Dairy Industry Awards Share Farmer of the Year winners Nick and Rose Bertram are no strangers to success.


Raw milk supplier ploughs on

It's business as usual for Timaru raw milk suppliers Stuart and Andrea Weir as the country is in total COVID-19 lockdown.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Vegan milk service hits UK

OPINION: In March, the first national dairy-free milk delivery service will be coming to British doorsteps, a clear sign that…

Red seaweed 

Farmers in Australia are experimenting with adding seaweed to cattle feed in order to stop cows producing as much methane.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter