Suitors line up
OPINION: As Fonterra's divestment of its Oceania and global consumer businesses progresses, clear contenders are emerging.
OPINION: The unexpected departure of A2 Milk’s chief executive last week was an unpleasant, but timely reminder of the destruction of value often seen between the farmgate and the end market.
Jayne Hrdlicka, apparently unaware that working for a global dairy business would involve international travel, resigned suddenly citing “excessive travel commitments”. She was in the job a mere 18 months, long enough to receive a huge share allocation as part of her salary package. She sold a big chunk of those shares, in two lots, making $4.3m and $2.1m respectively.
The news of her resignation rocked the markets, wiping more than a billion dollars off A2’s market value.
There’s no suggestion of illegality here. But there’s a huge question for A2’s board about whether its own decisionmaking on the big calls like appointing the CEO is adding value for shareholders. In this case the answer appears to be ‘no’.
The same questions were of course levelled at Fonterra’s board this year and they also came up a long way short.
You can’t argue that a $605 million loss on the back of billions of litres of farmers’ hard work isn’t a huge fail.
Theo Spierings, the chief executive who presided over the company in the years leading up to this result, was paid $43m during his seven-year reign.
That’s the real shame here. All that blood, sweat and tears expended by farmers to produce a high-quality raw product for the world and the businesses charged with taking that product to market, despite massive salaries and head office costs, failing to turn a profit.
It’s a wake-up call for all primary producers. Whatever vehicle they use to get their valuable produce to market, don’t take it for granted that the processing and marketing parts of the chain are being smart or efficient or adding any value whatsoever.
Make sure. Read the company reports, attend the meetings. Ask questions. Don’t fall for the spin.
To use the colloquialism, ‘keep the bastards honest’.
There’s too much at stake in 2020 – and beyond – to allow such largesse and waste to go unchallenged.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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