INDEPENDENT NEWS

Interim Results support the need for fundamental change

Published: Wed 20 Mar 2019 02:46 PM
20 March 2019
The Fonterra Shareholders’ Council supports today’s acknowledgement that fundamental change is needed to improve the performance of the Co-operative.
“Fonterra’s farmer shareholders will agree that the results announced today are not where they should be,” says Council Chairman Duncan Coull. “The Shareholders’ Council backs the Board and Management’s initiative to thoroughly review strategy. A well defined and executed strategy focused on our farmers’ milk is critical to maintaining sustainable returns and an enduring co-operative for generations to come.”
Solid progress has been made on reducing operating expenditure, capex and the asset sales required to meet the debt reduction target.
“Our Co-op has challenges ahead of it in parts of our business in Australia, South America and China, where we need to see significantly improved margins to meet the earnings guidance,” says Mr Coull.
“As farmers and business owners, we accept that some change can take effect over a shorter term, while the more strategic outcomes will take longer to evolve. We encourage shareholders to be patient and empower the Board and Management with time, to ensure the right decisions are made to support the long-term futures of our farming families.
Mr Coull also said that yesterday’s announcement about the potential sale of Westland Milk Products has highlighted to Council how critical a strong Fonterra co-operative is for all New Zealand farmers as it underpins the milk price for the entire industry, which in turn flows through to regional New Zealand.
ends

Next in Business, Science, and Tech

National Backs Businesses With $10k JobStart
By: New Zealand National Party
Government Exempts Some Home Improvements From Costly Consents
By: New Zealand Government
The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards
By: New Zealand Media and Entertainment
ASB Takes The Lead Again With New Low Home Loan Interest Rate
By: ASB Bank
The Problems With Testing And Case Statistics For Covid-19
By: Nathan Hoturoa Gray
Fletcher Building to lay off 1000 staff in New Zealand
By: RNZ
Driving prompt payments to small businesses
By: New Zealand Government
On Why We Should Legally Protect The Right To Work From Home
By: Gordon Campbell
Thousands Of Kiwis Travelling For Queen’s Birthday Weekend
By: Auckland Airport
Understanding 5G Concerns – Expert Q&A;
By: Science Media Centre
Record Monthly Surplus As Imports Dive
By: Statistics New Zealand
Bar reopening night 'much, much quieter'
By: RNZ
New Zealand’s population passes 5 million
By: Statistics New Zealand
Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist
By: NIWA
Milestone In Cash Flow Support To SMEs
By: New Zealand Government
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media