It’s a critical week for the country’s largest company, Fonterra, which has to find a new direction after shipping out its chief executive, Theo Spierings, writing off more than $1.5bn from its balance sheet, and posting its first loss in its 17-year history.
Meanwhile, back on the farm, Fonterra’s suppliers are absorbing payout downgrades as well as a slump in dairy farm prices. At the same time they are seeing the valuations of other companies in the dairy industry—notably A2 Milk and Synlait— soaring on the NZ sharemarket.
So they’ll be looking to Fonterra’s leaders for some fresh ideas on how to turnaround the fortunes of the big co-op. Continue reading “Why Fonterra’s farmers should be wondering what the Irish can teach us”