The new strategy is a clear reset with some clear targets for making a return on capital, Dairy Holidings chief executive Colin Glass says.
The stand-out is the tighter focus on required investment returns and clarification on what is important.
The really obvious move was away from the international milk pools and emphasis on how offshore milk can add value to NZ milk.
But he reset seems more prolonged than is ideal.
“We understand the reluctance to project aggressive targets that are not achieved,” Glass, who is responsible for 50,000 cows, said.
“However, the forecasts for next year don’t appear to be too different from the disappointing performance this past year.
“Hopefully, our co-operative’s execution of this strategy can outperform these near-term targets.”
The three- and five-year targets seem realistic and must be achieved if Fonterra is to regain the confidence of farmers to invest in co-operative shares, he said.