Fonterra - Business ContinuesMonday, May 26, 2003
The election of two new directors to the Fonterra Board of Directors should be reinforcing the shareholders message to Fonterra - you have got the directors, the executives, the staff, the facilities and the resources - now get on with the job of maximising returns from our milk.
The individuals elected or re-elected are in themselves not the key to improved performance of the Co-op, but to this observer, the fact is that shareholders have voted for pragmatic performance of the whole rather than for regional political cabals pursuing redress for past hurts.
Whilst there are still some initial structural issues for Fonterra to put right - such as peak notes - that are a component of supplier unease, the real issues for Fonterra lie in the manner that it manages its product and marketing functions.
Let's hope the board and its new members recognise the seriousness of the task and have the collective wit tofocus on their main task - payout - whilst maintaining an efficient growth and investment policy for the company.