Dairy industry good organisation supported

3 April 2007

Shareholders' Council supports one dairy industry good organisation

The Fonterra Shareholders' Council supports the Dairy Industry Good Review Group's recommendation to establish a single organisation to fund and deliver industry good activities.

The Council called for a formal review of dairy industry good effectiveness in October 2006 because the current structure is not reaching targeted levels of performance. The review group established to carry out the review presented its report to the Council today.

The report recommends merging the functions of industry good funder Dairy InSight and provider Dexcel into one, new organisation that would be farmer-owned, farmer-led and levy funded.

Fonterra Shareholders' Council Chairman Blue Read said: "It's fundamental that farmers' investment in industry good delivers productivity and profitability gains on-farm.

"The review group has conducted a thorough process with consultation showing widespread support for a single organisation. The Council has considered the review group's report and agree that one organisation to both fund and deliver industry good should result in greater alignment and accountability.

"Action must now be taken to improve the industry good structure for dairy farmers. The next step will be for Council to meet with other industry organisations to progress implementation of the report recommendations."

-ENDS-

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