Fonterra Shareholders’ Council Chairman to Retire

Media Statement
12 January 2007

Fonterra Shareholders’ Council Chairman to Retire

Fonterra Shareholders’ Council Chairman John Monaghan has announced he will not stand again in the March Council elections and will retire from his position as Chairman at that time.

Mr Monaghan has been a Councillor since Fonterra was formed, and was elected Chairman in 2003.
Mr Monaghan said he had always intended to serve only two terms as a Councillor. He had enjoyed his time on Council, but felt the time was right for a fresh face.

“Succession planning has been something we have focused strongly on in the past couple of years. As a result, we have developed a strong leadership team in Council and whoever is elected Chair will have that expertise and support at hand.”

With Fonterra continuing to address issues with the potential to affect farmers’ investments, including possible changes to the co-operative’s capital structure, Council’s role would remain a very important one, Mr Monaghan said.

“A lot of shareholders look to the Council for guidance, and it is important we can provide them with the information they need to play a full part in the workings of their co-operative,” Mr Monaghan said.

“Farmers have proved they are willing to embrace change, as long as it is in the long-term interests of the industry.”

Mr Monaghan said the Shareholders’ Council provided an important link between the company and its owners.

“The co-operative model has been central to the success of the dairy industry in New Zealand. A successful co-operative is one which meets the needs of its members, so understanding those needs is vital.

“One of the main aims I had when I became Chairman was to ensure Council did its job in such a way that we gained the respect of Fonterra’s stakeholders. I think we have achieved that, and I think that will be incredibly important to the co-operative in the future.

“A working relationship between Board and Council based on mutual respect is fundamental. Council’s key responsibility is to monitor the performance and direction of the Board and the company. Our relationship with the Board means we can discuss any concerns we have frankly and openly, and enables Council to function effectively as farmer representatives.”

ENDS

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