Fonterra reshuffles management team
Fonterra reshuffles management team to speed up value-add strategy
By Fiona Rotherham
April 24
(BusinessDesk) - Fonterra Cooperative Group, the world’s
largest dairy exporter, has changed two senior management
roles in a bid to push its value-add strategy harder in the
wake of shareholder criticism over its weak half-year
financial results and lower forecast dairy
payout.
Jacqueline Chow, who is currently managing
director global brands and nutrition, is stepping into a
newly-created role of chief operating officer velocity, from
June 1, where she’ll work with the management team to
boost performance across the cooperative.
Prior to
joining Fonterra in 2013, Jacqueline was Australia and New
Zealand general manager for Arnott’s, one of Asia
Pacific’s largest food companies.
Chief executive
Theo Spierings said Chow will “lead the next stage in
Fonterra’s evolution, working across the entire
co-operative to push forward the velocity part of our V3
strategy and deliver the best possible
performance.”
The V3 strategy unveiled in 2012
involves volume, value and velocity: increasing milk
production volumes to ensure Fonterra maintains its share of
the growing dairy market, driving more value from its milk
through higher value products, and doing so at speed.
The other appointment is Johan Priem, currently president Greater China, who will take on the additional role of managing director Asia, Middle East and Africa from August. That role was previously held by Pascal de Petrini, who resigned a month ago after only two years in the job in order to return to France to work for his former employer, Danone.
Speiring said Priem was well placed to take on the additional role given he has previously held senior leadership positions in that part of the world for other companies.
“Johan will draw on his extensive knowledge, experience and relationships in the region, which includes a number of Fonterra’s key strategic markets,” he said.
As part of the reshuffle, a senior executive in the global brands and nutrition team, René Dedoncker, will take over Chow’s former role in an acting capacity from June.
In March, Auckland-based Fonterra reported a 16 percent drop in first-half profit to $183 million, reflecting tough conditions in dairy. Sales were down 14 percent to $9.7 billion.
While it maintained its
forecast farmgate return for the season at $4.70 per
kilogram of milk solids, it disappointed its 10,600 farmer
shareholders by reducing the forecast dividend range by 5
cents to between 20 cents and 30 cents a share.
That
led to reports of a number of its shareholders lining up to
supply other independent processors and for Fonterra
Shareholders’ Council chairman Ian Brown to say
shareholders “rightfully want to see the strategy provide
a return on their investment, especially given the low milk
price environment farmers are currently experiencing. A
sound strategy is key to adding value long
term.”
(BusinessDesk)