Tuesday, 18 June 2024 15:15

Cut the fat?

Written by The Hound

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OPINION: Fonterra's decision to exit the ‘value-add’ game and sell its consumer brands business seems to have been met with more cheers than jeers, although some commentators are wary of the strategy to simplify.

It seems to your old mate that most of the people with skin in the game – farmer shareholders – like the decision to strip the co-op down to a lean, mean commodity machine.

Fonterra’s track record in the consumer space hasn’t been stellar, and, if they keep their costs lean, stripping out the many fat salaries that come with a brands business, there’s nothing wrong with being one of the best dairy commodity producing businesses in the world.

Maybe they could also ditch that fancy office in Auckland! Let’s see that put to a vote!

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