Stuart King – Hauraki Plains
I’m well aware farmers have again been asked to dip into their pockets through a lowered payout to support Fonterra through a big loss year but I’m uncertain how long shareholder patience will last.
If farmers support that, then the co-op can go on forever. I agree with Chris Lewis who said farmers will not give this business up.
But this outcome reflects poor performance and as a farmer I feel quite a bit of anger, almost like we have been taken advantage of by management.
Despite the much touted V3 strategy and years of talking about adding value the co-op still struggles to deliver.
It has become a gold-plated, lazy business. It does not look like a business that is trying to cut costs.
It must get back to the basics of business. Is the value-add, branded business where the co-op needs to be?
Fonterra seems to be doing well with its ingredients and food service business but value-add seems a distraction and a loss maker.
And the changes at the top are not entirely reassuring.
