Fonterra Welcomes Independent Inquiry Report

29 October 2013

Fonterra Welcomes Independent Inquiry Report

Fonterra today welcomed the report of the WPC80 Independent Inquiry for the Fonterra Board.

Chief Executive Theo Spierings said the report was wide-ranging and thorough. It provided Fonterra management with important in-depth observations and recommendations.

“The independent report affirms our position as a global leader in food production and safety with a proud history. It has comprehensively examined what happened and identified where we need to focus in order to maintain and enhance our global position.

“The independent report findings and recommendations are consistent with our own approach to strengthening the Co-operative and renewing trust and confidence among our many and varied stakeholders. For example, we have recently tightened our already rigorous food safety and quality controls.

“We have learned lessons from what has been a difficult experience, subsequently found to be a false alarm. We understand the anxiety caused at the time to our customers, regulators, shareholders and other stakeholders, both in New Zealand and around the world, and especially parents concerned for the welfare of their children.

“Fonterra has built a well-earned global reputation for food safety - our Co-operative is well placed, in a wonderful country that is the dairy capital of the world. We have a solid foundation to continue to drive our strategy and grow. Fonterra is emerging from this experience with a culture of developing more transparency, accountability and retaining utmost focus on food safety and quality,” Mr Spierings said.

Fonterra Group Director of Strategy Maury Leyland, who is leading Fonterra’s reputational rebuild programme, said the Board’s independent report added specificity to work already underway and valuable additional insight.

“The majority of the independent report recommendations are in line with our operational review and there is important feedback for us regarding the way we interact with our broad range of stakeholders, both at times of crisis and during the course of normal business.

“Our priorities are to create a new global benchmark for dairy safety and quality, to reinforce the trust of New Zealanders, and to continue to strengthen our relationship with customers and critical markets. We are engaging all our people in these priorities,” Ms Leyland said.

Fonterra Chairman John Wilson said that the findings make it clear that Fonterra is world class and that the recommendations will make the Co-operative even stronger.

“I have great confidence in Theo, his management team, and all our people who are working hard to build on our reputation and strengthen our business globally,” he said.

About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.

The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our more than 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.

ENDS

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