Great Scott – could this be the source of fresh thinking from Fonterra?

Fonterra’s new chairman, John Monaghan, the man chosen to resuscitate the co-op’s flagging fortunes, got a big serve from the NZ Herald’s  Andrea  Fox this week.  Under the headline “New chairman – same old Fonterra song”, she wondered  if  anyone else  had a sinking  feeling  when Monaghan presented his idea of the biggest  challenge facing the embattled  dairy  company:  the need  to change  the law  that forces Fonterra  to accept milk  from  any  farmer and sell it to  rivals at a subsidised  price.

Fox  went  on:

Meanwhile back in real life land, Fonterra had a crisis of confidence among its 10,000 farmer-owners due to its financial and investment decisions, its balance sheet wasn’t pretty reading, and our so-called ‘national champion’ was being scorned by the public and the Beehive.

“With the chief executive as well as the former chairman gone, Monaghan, rather than jump into the leadership void and address these inconvenient truths head-on, pitched a tired old complaint that’s worked for Fonterra’s spin machine before, firing up righteous indignation among farmers when it’s needed a distraction tactic.

“It’s also been a handy one for implying if only Fonterra didn’t have this pesky bit of the legislation holding it back it’d perform better.But challenged by the Herald to produce evidence of the hardship created by its statutory milk obligations, New Zealand’s biggest company cried commercial confidentiality”.

Continue reading “Great Scott – could this be the source of fresh thinking from Fonterra?”