Fonterra not ‘broken but needs to change‘ – chairperson

Fonterra‘s board of directors have acknowledged to shareholders that it‘s been a tough year, but say they‘re confident the co-op‘s farming situation will improve.

Some of Fonterra‘s 10,000 shareholders are at its annual general meeting in Invercargill today.

The AGM comes hard on the heels of Fonterra posting – which triggered the announcement of a new strategy focused on adding value to local production.

A strong turnout was expected at the meeting, which will consider initiating an independent review of the shareholders‘ council.

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Lumsden farmer Tony Paterson, who is asking for the review, said the current set-up isn‘t working for shareholders.

Chairperson John Monaghan told the meeting Fonterra is focusing on local milk production and only looking to international sources as a last resort.

“We have a $4 billion revenue business in China; we now account for 40 percent of dairy imports into mainland China.

“We‘ve built a $2 billion food service business from pretty much scratch in less than five years. The co-op wasn‘t broken but it did need to change.”

Mr Monaghan said the company needed to listen to its shareholders.

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