New direction needed for dairy industry

31 May 2007

New start and new direction needed for dairy industry good organisation

The Fonterra Shareholders' Council says it's imperative that the Establishment Board formed this week to oversee the merger of Dairy InSight and Dexcel sees that the new organisation has a fresh start and a fresh direction.

The merger of dairy industry good funder Dairy InSight and provider Dexcel is the main recommendation from the report of the Dairy Industry Good Review Group, which was formed to review the effectiveness of dairy industry good delivery. The Council called for the review because the current industry good structure is not reaching targeted levels of performance for dairy farmers.

Fonterra Shareholders' Council chairman Blue Read said: “The Shareholders' Council supports the review group's proposal to merge the functions of Dairy InSight and Dexcel and we are pleased to see this progressing. The merger should result in greater alignment and accountability, which will be welcomed by farmers.

“However the review group's report was clear that because of the circumstances that created the need for this review, a fresh start and fresh direction is needed. It is important that the Establishment Board ensures that we don’t simply end up with a recycled version of what we had. The Establishment Board must lead the organisation in a new direction that will give farmers the confidence to support the merger proposal when it is put to the vote in October.

“Dairy industry good delivery is vitally important but it has been an area of concern to farmers for some time.

“This review is about improving outcomes for levy-paying farmers. They need to have confidence that their significant investment in industry good is being used as effectively as possible to deliver real benefits on-farm.”

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