Either that person settles down rapidly to work in a constructive way, or they remain opposed, objecting for the sake of it and taking on the negativity of outside groups. These, understandably, seize the opportunity once they have “their” person in a position of power.
This scenario is seen in local body politics and at the national level, where robust party structures generally take the upper hand.
So it’s going to be interesting to see how South Canterbury farmer and long-term Fonterra critic Leonie Guiney performs now she’s been elected to the Fonterra board. Full credit must go to her for winning, given there were other contenders who had run for the board before, and have high profiles outside dairying.
But farmers will remember Guiney’s opposition to aspects of Trading Among Farmers (TAF) and wonder whether there are still residues of those feelings. While there have been a few hiccups, most would acknowledge TAF provided a solution to the co-op’s capital-raising dilemma. Whether it turns out to be a long-term fix or something which will need re-engineering along the way is still to be seen.
They will probably feel comforted that Guiney is now in a position to see all the detail close up and dig as deep as she needs to. She has shown she can be relied on to ask the hard questions before the board takes any changes to a shareholder vote.
But some will be worried friction might be introduced which will prove unhelpful when it comes to the smooth operation of Fonterra. There’s never been a more important time for unity, especially when it comes to making the most of overseas market opportunities which may not be as prolific for many years to come. New threats raise their heads all the time such as the ongoing standoff between Russia and many western powers who also happen to be international dairy players.
Chief executive Theo Spierings’ great work in pushing Fonterra forward as a good corporate citizen at home, with the Milk in Schools programme and The Source rebranding exercises, could be undone if all the public sees are squabbles at Fonterra’s highest level.
One of the most basic features of a co-operative is that every member is entitled to their view as well as their vote. But if there’s a constant level of niggling about small detail, that’s sure to take directors’ eyes off the big picture, which could result in frustration for others.
There’s been a tremendous amount achieved by chairman John Wilson. He’s shown himself to be unexcitable – a great quality when it comes to getting on with business, particularly through the dark days of the WPC80 botulinum scare.
And he’s drawn directors as well as senior management behind him in setting in place a strategy that charts a way forward that all shareholders can buy into and be proud of.
It would be a shame if he found himself constrained by a board which lacked the unity of purpose of recent years.
On the other hand, those farmers who have felt disenfranchised through the TAF debate and have contemplated cashing up their Fonterra shares and going to another processor might think again.
They know that with Guiney they will have a strong advocate who will rigorously examine its every move. Should she approve they will know that’s what’s being proposed is in the co-op’s best interests. If they still have concerns they’ll be able to take them to her to explain and get answers from elsewhere in the co-op.
This might mean that some shareholder discontent will be dealt with before it breaks into the public arena. All shareholders will welcome that, particularly those who have watched with concern as competitors have nibbled away at Fonterra’s supply base by playing on their concerns and promising something better.
Fonterra has declared it will aggressively chase new supply as well as strive harder to retain that it already has. That’s going to be very important in a low payout year where every drop of milk counts. It’s also reviewing its organic milk requirements, giving hope that this growing and lucrative niche market can be turned to the co-op’s advantage.
Perhaps the best initial judgement of Guiney’s role on the Fonterra board will be the success or otherwise Fonterra has in convincing farmers that it isn’t just obliged to collect all the milk offered to it.
It needs through future actions to prove it truly is the home of choice for a consistently major percentage of this country’s supply.
