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Bending Dairy Co Management Values

Greetings Readers

Those naughty lads from Kiwi may have been caught out indulging in a bit of hanky panky before the marriage was consummated between NZ Dairy, NZDB and Kiwi.

Should we be surprised that something this irregular could have happened? Probably not!

Kiwi has long since had an aggressive culture of taking things to the edge – a hybrid sort of cooperative brinksmanship that it honed and practised as it went through its stream of mergers to consolidate its self in the major company that will merge with others into Fonterra later this month.

But in this instance the allegations of irregularity cannot be dismissed with an indulgent smile by some anxious board chairman.

It’s not the fact of breaking the rules or the financial cost that is the worry. It is the culture that allowed it to happen or even encouraged it to happen and it is that culture that should cause shareholders of Fonterra considerable concern if it has been transported into the new company from which so much is expected..

NZ business has had a series of spectacular international business cock-ups in the course of the past few years. However, these cock-ups may be indicating that NZer’s believe that we are better at international business than we really are.

That the local “milk mafia’s” management of the final perilous ride to a consolidated industry this past ten years has not been to everyone’s satisfaction is well known. But the consolidation will have been for nothing if the new structure is low on business ethics, honesty and honour and these rough local standards are applied in our international operations. Factors that up until now the NZDB has remained aloof from

Perhaps dairy co shareholders should have been like the musterer who found his pack of old dogs had developed too many bad habits which were being passed on to the young pups – it was only finally resolved by shooting the whole pack and starting afresh.

Good farming

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