Fonterra Cooperative Group has appointed Miles Hurrell as their new chief executive with immediate effect. Hurrell had been named interim chief executive in August after Fonterra announced that they were lowering their farmgate payout and trimming their dividends to retain cash.
In September, Fonterra posted its first ever full-year loss after writing down the value of its Beingmate Baby & Child Food investment and paying a settlement to Danone. Fonterra announced that they would review its significant investments, assets and joint ventures to evaluate their performance. The review will cover assets that are no longer deemed core to the business.
“John Monaghan, Fonterra’s chairman, said, “Miles has been performing well under difficult circumstances. Our performance is not something that will be fixed overnight. It will require the courage to make difficult decisions, be up-front with farmer-owners, unit holder and other stakeholders, and instil a culture of accountability and performance right across the organisation.”
Hurrel said, “Despite the challenges with our current performance, the fundamentals of this business are strong. To realise our potential we need to get the basics right, and that means a full review of our strategy and ultimately, a fundamental change in direction.”