Fonterra inquiry team includes external members

12/08/2013

Fonterra’s inquiry into the whey protein concentrate contamination will include two people from outside the company.

Today Fonterra Chairman John Wilson announced that Fonterra’s Board has established the WPC80 Inquiry Committee, and charged them to oversee an independent review into the circumstances giving rise to the affected whey protein concentrate (WPC80) and subsequent chain of events.

Mr Wilson said he had complete confidence that Fonterra’s CEO, Theo Spierings, had made the right decisions and is continuing to do everything to manage this complex issue, but that there are serious lessons that need to be learnt.

“It is critical that we identify these lessons quickly so our farmers, governments, customers, consumers and unit holders can again have full confidence in Fonterra and its products.

“With this in mind, the Board has confirmed the Committee will be chaired by Independent Director, Sir Ralph Norris, and will include two external independent members who are not Fonterra board members.”

The Committee is comprised of:
·         Sir Ralph Norris (chair) – Independent Director
·         Simon Israel – Independent Director
·         Dame Judith Potter – External Independent Member
·         Blue Read – Farmer Elected Director
·         Nicola Shadbolt – Farmer Elected Director
·         John Waller – Independent Director

An eminent and respected scientist will also be appointed to the Committee over the coming days as the second independent member.

Commenting specifically on Dame Judith Potter, a retired High Court judge and fellow of the New Zealand Institute of Directors, Mr Wilson said that her appointment to the Committee demonstrates the Co-operative’s commitment to a full and independent inquiry.

“Dame Judith brings with her a breadth of legal, judicial and board experience, and a reputation for being decisive and commercially astute.”

The Committee has appointed Jack Hodder, QC of Chapman Tripp, to undertake the review into the events leading up to and following the WPC80 concerns. Mr Hodder will  report back  to the Committee.

As part of this, Mr Hodder will have access to all necessary independent experts and advisers, and the WPC80 Inquiry Committee is currently seeking an internationally recognised industry expert on the manufacturing and safety of foods to work alongside Mr Hodder.

“The inquiry will start immediately and it is the Board’s intention to have it completed within six weeks. However, the emphasis will be on a full and thorough investigation.

“The Board has given the Committee a far-reaching remit. It will not only review the circumstances and principle decision points relating to the affected WPC80 product, it will also look more broadly at Fonterra’s business procedures, systems and practices,” Mr Wilson said.

Two well qualified external members, three independent directors and two farmer elected ones provide a good mix for the committee.

A full inquiry into not just the contamination and how it was handled but the broader view of the company’s procedures, systems and practices is necessary to find out exactly what went wrong and why it was so badly handled.

Only then will the company be able to improve what it does and how it does it and from that foundation rebuild its reputation.


Rural round-up

19/04/2013

New Zealander joins World Farmers Organisation board:

Federated Farmers President, Bruce Wills, has been appointed to the World Farmers Organisation Board as its Oceania representative. This assures New Zealand a key voice on the peak body representing farmer organisations from over 50 countries.

“It has been a superb General-Assembly in Japan,” says Bruce Wills, Federated Farmers President, speaking from Niigata, Japan.

“Federated Farmers has helped to broker a breakthrough trade policy for the World Farmers Organisation. I need to acknowledge the high level policy work involving not only Federated Farmers’ staff but kindred organisations too. . .

Cracks appear between farmer groups – Allan Barber:

It hasn’t taken long for the cracks to appear in the ‘united farmers for change’ movement started by the Meat Industry Excellence group which held its first meeting in Gore a couple of weeks ago with a resoundingly successful response.

The next meeting organised by MIE will be held in Christchurch this Friday, but without Gerry Eckhoff who chaired the Gore meeting but has resigned over a disagreement with the strategy. Having said on the National programme the morning after the meeting that the new system and structure could be in place by next season at the beginning of October, he is now saying this is completely unrealistic. I told you so, Gerry! . .

Drought Declarations in March Dominate Rural Marketplace:

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 21 fewer farm sales (-5.3%) for the three months ended March 2013 than for the three months ended March 2012. Overall, there were 376 farm sales in the three months to end of March 2013, compared with 379 farm sales in the three months to February 2013, a decrease of 3 sales (-0.8%). 1,433 farms were sold in the year to March 2013, 2.4% more than were sold in the year to March 2012.

The median price per hectare for all farms sold in the three months to March 2013 was $22,317; an 11.3% increase on the $20,056 recorded for three months ended March 2012. The median price per hectare increased by 1.7% compared to February.

The REINZ All Farm Price Index eased by 1.1% in the three months to March compared to the three months to February, from 2,939.42 to 2,907.18. Compared to March 2012 the REINZ All Farm Price Index fell by 7.2%. Further details on the REINZ All Farm Price Index are set out below. . .

Govt supports development of dairy women leaders:

Associate Minister for Primary Industries Jo Goodhew has announced that the Dairy Women’s Network has been approved for a Sustainable Farming Fund grant of $180,000 over three years.

“The Government is investing in the development of female leaders in dairying to ensure the sector is well-placed to face future challenges,” said Mrs Goodhew.

“The Dairy Women’s Network has a track record of linking up and empowering women in dairying.

“The Network has identified the need for leaders to drive reform in the dairy sector so that it’s meeting social and environmental footprint obligations without compromising overall productivity.” . . .

Dairy Women’s Network Chief Executive Resigns :

The Dairy Women’s Network has announced the resignation of chief executive Sarah Speight.
 
Backed by significant national and international dairy industry experience, Mrs Speight joined the Network in 2011 as the first full-time chief executive in its 15 year history.
 
For the past two years she has been commuting from her home in Tauranga to the Network’s Hamilton-based offices. Mrs Speight said that to take the Dairy Women’s Network to the next stage and do the role justice requires someone who is Waikato-based.
 
“Being in Tauranga and with significant family and community commitments has made me rethink my priorities. I have decided to resign from the role of chief executive to spend more time with my family in the immediate future.” . . .

Govt funding to help support eucalpyt forestry:

Associate Minister for Primary Industries Jo Goodhew has announced that two projects focusing on eucalypts have been approved for Sustainable Farming Fund grants.

“The Government is investing in the development of eucalypts as a foresting option,” said Mrs Goodhew.

“Eucalypts offer a useful planting option. They are an alternative landuse for dryland areas and produce a naturally durable timber product.”

A project being run by the NZ Dryland Forests Initiative to share information about how to effectively manage plantations of durable eucalypts in dryland areas will receive SFF funding of $216,000. . .

Change Of Directors On Fonterra Board:

Fonterra Co-operative Group Limited announced today the appointment of a new Director, Simon Israel, following the retirement of Ralph Waters.

Chairman John Wilson said the Board welcomed Mr Israel, a Singaporean who has exceptional governance, consumer and wider Asian business experience.

“Simon is based in Singapore and has worked in Asia for many years. He has significant business credentials in Asia and in consumer and investment businesses. He will bring to the Board invaluable knowledge and insights as Fonterra pursues its business strategy, particularly with its emphasis on emerging markets,” said Mr Wilson. . .

Synlait Milk Launches its ISO 65 Accredited Dairy Farm Assurance System:

Synlait Milk launched its internationally accredited ISO 65 dairy farm assurance system called Lead With Pride to its 150 strong milk supply base today.

The only system of its kind in Australasia, Lead With Pride recognises and financially rewards certified milk suppliers for achieving dairy farming excellence.

“It is about demonstrating industry leadership in food safety and sustainability, and guarantees the integrity, safety and quality of pure natural milk produced on certified dairy farms .

“It enables our world leading health and nutrition customers to differentiate their products using Gold Plus or Gold Elite certified milk that has been sustainably produced,” says Synlait Milk CEO Dr John Penno. . .

Funding to help sustainable aquaculture porjects:

Five important projects focusing on aquaculture will benefit from the latest round of Sustainable Farming Fund grants, Minister for Primary Industries Nathan Guy has announced today.

“New Zealand seafood is a premium product and it’s great to see groups looking to improve their production and value by developing aquaculture,” says Mr Guy.

The projects with funding are:

  • Koura Aquaculture, by Wai-Koura South: $119,420
  • Farming Premium Salmon, by the Salmon Improvement Group: $600,000
  • Management of the GLM9 Greenlipped Mussel Spat Resource, by GML9 Advisory Group: $20,000
  • Tuna (Shortfin-eel) Aquaculture, by Te Ohu Tiaki o Rangitane Te Ika a Mauri Trust (MIO): $600,000
  • Aquaculture custom bacterial vaccines, by Aquaculture New Zealand: $115,686. . .

Easy lamb roast (hat tip: Whale Oil):


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