Theo Spierings to resign?

May 30, 2016

The Australian reports that Fonterra CEO  Theo Spierings is about to resign:

Speculation is mounting on both sides of the Tasman that the Dutch chief executive of Fonterra, Theo Spierings, is about to depart the dairy powerhouse, with Air New Zealand chief executive Christopher Luxon earmarked as his most likely replacement.

Mr Spierings has headed New Zealand’s largest company for about five years; and last year he faced criticism as Fonterra’s Australian arm fell into loss making territory, triggering a sale of its Australian yoghurt and dairy dessert business to Parmalat Australia in a quest to return it to profitability.

But the talk of his departure comes after Murray Goulburn chief executive Gary Helou recently left the Australian dairy co-op following a shock profit downgrade.

The dairy industries in both Australia and New Zealand are wresting with the challenges surrounding a lower milk price, and in New Zealand, the difficulties are compounded by the higher New Zealand dollar. Speculation has emerged in the past month on both
sides of the Tasman that Mr Luxon has been earmarked as the next Fonterra boss, with a departure by Mr Spierings, who has 30 years experience in the industry, said to be close.

Sources close to Fonterra have dismissed the suggestions. . . 

International commodity prices aren’t under the control of a CEO.

A company culture and its communications are and both need improvement at Fonterra.

UPDATE:

An email to shareholders from Fonterra chair John Wilson says:

  • I have received a number of emails from farmers this morning concerned at the media speculation that  Fonterra’s CEO Theo Spierings plans to resign.
  • This rumour is completely untrue.
  • Farmers and shareholders would be the first to know if the CEO of their Co-operative had resigned.

 

 


Rural round-up

April 28, 2016

Farming salaries holding firm despite tough conditions:

Dry stock farmers’ salaries have seen strong growth in the last year, according to Federated Farmers and Rabobank’s 2015/2016 employee remuneration report.

Despite tough times and low inflation, most sheep, beef and grain farmers have been able to provide higher average salaries on a year ago – illustrating real income increases for many farm workers at all levels of experience and responsibility.

Salaries in the dairy industry have remained stable, but for the first time there has been a very small decrease in the value of extras farmers provide their staff, such as firewood and internet access, pushing the total value of their package (TPV) down. . .

Farm Environment Competition Produces Great Crop Of Supreme Winners

Left to Right: Roger Landers and Matt Kelbrick (Taranaki), Graham and Marian Hirst (East Coast), Shane Gibbons and Bridget Speight (Southland), Joe and Suz Wyborn (Canterbury), Richard and Dianne Kidd (Auckland), Daniel and Reidun Nicholson (Greater Wellington), John Hayward and Susan O’Regan, (Waikato), Brendon and Paula Cross (Otago), David and Adrienne Hopkins & Ben and Belinda Price (Horizons), Dennis and Rachelle O’Callaghan (Northland), Leighton Oats and Matt Nelson (Bay of Plenty).The 2016 Ballance Farm Environment Awards have delivered an outstanding line-up of Supreme winners from the eleven regions participating in the prestigious competition.

Auckland is the latest region to join the Ballance Farm Environment Awards, with Helensville sheep, beef and forestry farmers Richard and Dianne Kidd claiming the region’s first Supreme title. Fellow sheep and beef farmers Dennis and Rachelle O’Callaghan, Taipa, were Supreme winners in Northland, with large scale kiwifruit operation BAYGOLD Ltd, Paengaroa, winning in the Bay of Plenty. . .

Federated Farmers thrilled Ruataniwha scheme now in position to proceed:

Federated Farmers is thrilled the Ruataniwha Water Storage scheme in Hawkes Bay has made another significant step towards hitting the go button, after it was confirmed sufficient water sign-up will make the scheme cash positive.

Hawke’s Bay Regional Investment Company (HBRIC) announced yesterday it has 196 Signed Water User Agreements, the numbers needed for the project to proceed.

Federated Farmers Hawkes Bay Provincial President Will Foley says the dam will preserve the inter-generational nature of family farming in the Hawkes Bay. . . 

Dog stays with dead farmer:

The body of an 87-year-old farmer who went missing in rugged Far North bush was found after searchers spotted a dog which had stayed near his side all night.

The man was last seen about 1pm on Monday when he left home on his quad bike to check farm equipment on his Topps Access Rd property, just south of Kaeo.

Family, friends and neighbours began a search when neither he nor the dog returned. They called police when there was still no sign of the pair by 8pm.

The cattle dog, which was described as small and normally timid, was understood to belong to the man’s daughter but followed him everywhere he went. . . 

Love of farming is in the DNA – Kate Taylor:

University student Olivia Ellis works every time she goes home for a visit. She wouldn’t have it any other way.

Home is a 320-hectare farm, Papawai, on State Highway 50 between Onga Onga and Tikokino in Central Hawke’s Bay… home also to parents Richard and Helen Ellis.

They’ve been there since 1995 when Olivia was a toddler, along with big brothers William, who after qualifying as a builder is now shepherding near Timaru, and the late George, who worked for WaterForce in Ashburton before a truck crash in 2014. . . 

GlobalDairyTrade moves to 24/7 online trading:

The global dairy trading platform owned by Fonterra is to expand further into online trading.

GlobalDairyTrade (GDT), though owned by Fonterra, acts independently as one of the world’s leading dairy trading platforms.

As well as its fortnightly auction, the company offer a new way for customers to trade in the 66-billion litre international dairy market. . . 

Dairy co-op Murray Goulburn cuts milk prices, MD Gary Helou departs – Nikolai Beilharz:

Australia’s largest dairy processor Murray Goulburn has announced it will cut its milk price for suppliers, with managing director Gary Helou also announcing his departure.

The dairy co-op says it is no longer feasible to pay $5.60 per kilogram of milk solids, and now expects to pay between $4.75-5 per kilogram, a drop of around 10 per cent.

MG says it will introduce milk support payment programs to give suppliers an equivalent milk price of $5.47 per kilogram. . .

What farmers in other countries get paid for milk – Charlie Taverner:

The dairy crisis is hurting farmers across the world, as production far outstrips any rising demand.

Farmers Weekly looks at the farmgate prices and milk production levels around the world and considers how milk producers are coping in different countries.

See a snapshot of farmgate prices in the graphic and read the detail for each country below.

See also: How UK dairy producers can compete globally

UK

The UK’s strength is a big liquid market — but that means dairy farmers are divided.

The average milk price of 23.13p/litre in January hides a great split. . . .

Soils big win buried in the science – Mike Foley:

AUSTRALIA’S approach to soil must dig deeper if our agriculture sector is to keep pace with its competitors.

Government policy has for too long taken a narrow focus on soil, prioritising funding for research aimed at enhancing environmental outcomes, as opposed to research that delivers productivity gains.

That’s according to soil researcher Andrea Koch, formerly of the United States Study Centre’s soil carbon initiative. . . 

 


Rural round-up

December 19, 2013

SFF implements salary freeze – Nigel Stirling:

Silver Fern Farms (SFF) is implementing a salary freeze as part of a range of measures to get the meat processor back to profitability.

The move, revealed at the company’s AGM in Dunedin today, holds all salaried employees’ remuneration at current levels for a period of 12 months.

The company last year paid wages, salaries and benefits of $315.1m, up from $290.2m the previous year.

Chief executive Keith Cooper outlined further steps to turnaround the company’s performance including land disposals and exiting some stock financing arrangements. . .

Farming – change the perception – Will Wilson:

Agriculture must tread carefully in its bid to attract new entrants to ensure it does not undervalue and trivialise the incredible amount of hard work and education required to be success in the industry.

Agriculture is such a catch all term for a huge range of very specialist professions, yet from the outside the perception is the drip fed image of the village idiot on a tractor or the floppy haired Hugh Fearnley-Whittingstall in his cable knit.

As an industry agriculture continue to pander to this image because it’s media friendly and easier than finding out and explaining the real demands of modern agriculture. . .

Financial report shows agriculture is well on track:

Federated Farmers is pleased to see the Government’s half year Economic and Fiscal Update report showing a faster growing economy, with the agriculture industry being well on its way to doubling its exports by 2025.

“We have long advocated for economic restraint, and it is great to see the $86 million surplus forecast for 2014/15 is up ever so slightly on the surplus forecast in May,” says Bruce Wills, Federated Farmers President.

“Agriculture has had a great start, with the tradable sector growing 11.1 percent since 2009 compared with non-tradeables up 6.6 percent, however resource pressures are growing and next year we will likely see a tightening of monetary policy to dampen inflation. Farmers and exporters will need the Government to keep spending and debt under control in order to take the pressure off interest rates and the exchange rate. . .

Commission releases final report on Fonterra’s milk price manual:

Issued 16 December 2013, Release No. 56

The Commerce Commission has today released its final report on its statutory review of Fonterra’s milk price manual. The manual determines how Fonterra calculates the farm gate milk price, which is the price paid by Fonterra to dairy farmers for their raw milk.

This is the first of two statutory reviews that the Commission is required to undertake each milk season under the 2012 amendments to the Dairy Industry Restructuring Act 2001 (DIRA).

The Commission has concluded the 2013/14 Milk Price Manual is largely consistent with the purpose of the DIRA milk monitoring regime. . .

MG lifts milk price to $6.25/kg :

MURRAY Goulburn (MG) has announced a third step-up in the farmgate price (excluding the NSW-Sydney region) for the 2013-14 season of $0.18 per kilogram butterfat and $0.38/kg protein.

This step-up takes MG’s weighted-average, available price to $6.25/kg milk solids.

MG has also increased its end of season forecast to a range of $6.30-$6.50/kg milk solids.

“Global demand for dairy foods remains strong and as a result prices for key dairy ingredients, such as whole milk powder, have remained at near record levels for an unprecedented period,” MG managing director Gary Helou, said. . .

Canterbury style zone committee comes to the Wairarapa:

Federated Farmers’ Wairarapa welcomes the formation of the Ruamahanga Whaitua Committee and its commitment to balance environmental and economic values for the Ruamahanga Catchment.

“The Whaitua committee makeup is well balanced to deliver sustainable and workable rules for the Catchment and the Wairarapa,” says Federated Farmers’ Wairarapa provincial president Jamie Falloon.

“We thank the people involved for putting their names forward for what will be a pretty busy two year period.

“It will be a challenging process and will require all parties to be fully involved in discussions to find outcomes that are what the community wants. . .

Workshops help dairy farmers drive better production and profit:

Farm nutrient company SealesWinslow is running a series of seminars and workshops to help dairy farmers achieve higher production, margins and profits.

SealesWinslow’s “Routes to Profitable Milk Production” roadshow, which kicked off in the Waikato in late October, has been rated highly for content and relevance by farmers attending.

Animal nutrition expert for SealesWinslow, James Hague, has been demonstrating how farmers can master the art of balancing the diet to fully feed the herd and benefit from better production from grass, higher production per cow and per hectare, higher margins and more profit. . . .


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