Milk price certainty
Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.
Mention the words Westland Milk Products and eyebrows are raised and furrows appear on the face. Some say it’s a basket case, others in the know believe it is quite fixable. Time will tell.
Toni Brendish, the new chief executive, has the massive task of sorting out the basket and making this proud and fiercely independent co-op viable again. If she does that she will deserve the same accolades Lain Jager received for getting kiwifruit out of the Psa mess.
But there is a difference between Psa and the problems Westland faces. Arguably, WMP’s problems are manmade, arising from a plausible strategy badly executed.
While the now-departed chief executive has to carry the can for much of this, the board of WMP collectively should not be exempt blame. They were elected or appointed to make sure the strategy worked and to intervene if necessary. We don’t know the inside story and so cannot apportion blame.
But now with Peter Morrison (chairman) and Katie Milne (deputy chairman) at the helm of WMP what difference will they make? Clearly they will have to make a big difference and show outstanding leadership in nursing their farmer shareholders and staff through challenging financial times. They will have to communicate and build confidence as never before. Not by silly public relations (read ‘spin’), but by genuine honest factual information from now on, throughout the next season and beyond.
They may have to do special things for the farmers who now face disaster, and not over-promise when they don’t really know what’s in store. Farmers appreciate certainty, even if it is bad. They don’t like surprises, especially nasty ones.
The whole of the West Coast has to get behind Westland Milk and Morrison and Milne must mobilise that support and walk the talk.
The board must support and advise the chief executive, not play politics. They need to make hard decisions but at the same time cushion the landings of those who may fall by the wayside so that WMP can survive.
The task of Morrison, Milne and the management team is not just to save WMP, but to save the whole West Coast economy from collapse.
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