Tuesday, March 19, 2024

Farmers have a choice of five candidates to fill three seats

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Fonterra is conducting a wide-open contest among five nominees to fill three vacancies around its board table, which consists of seven farmer-directors and four independents.
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The retirements of former chairman John Wilson through ill-health and of long-serving director Nicola Shadbolt mean Ashley Waugh is the only sitting director seeking re-election.

Because the co-operative recently reported its first loss in 17 years of operations Waugh is exposed to a possible backlash through the ballot box from disgruntled shareholders.

But the opposite view is that Fonterra needs to retain its board experience for what is a complex and challenging governance job.

Fonterra recently down-sized its board by removing two farmer-director positions.

Only chairman John Monaghan remains with more than three years’ experience among the farmer-directors and three of the independents are also comparative newcomers.

The representation and governance review approved by farmers in 2016 introduced a skills matrix and confidential candidate assessment process done by an independent nomination panel.

This year it put forward three highly qualified men – Waugh, Zespri chairman Peter McBride and Maori leader Jamie Tuuta.

Subsequently two candidates chose to self-nominate – former director Leonie Guiney and multiple farm owner and irrigation scheme chairman John Nicholls, both from Canterbury.

Voters could therefore be faced with difficult choices and preferences when exercising their three yes votes or five no votes or a combination thereof.

Electoral officer Warwick Lampp, of ElectioNZ in Christchurch, said the code of conduct for candidates includes saying nothing that brings Fonterra into disrepute or criticises the electoral process.

They can respond to media questions and distribute their profiles but do not have to.

Profiles and statements for the five candidates are published here.

Peter McBride

Peter McBride will bring to Fonterra the skills gained and experience of high-level governance during very complex and difficult situations for the kiwifruit industry.

He led the kiwifruit industry’s response to Psa as inaugural chairman of Kiwifruit Vine Health and has been Zespri chairman since 2013 and a director since 2002.

McBride is also chief executive of Trinity Lands, the charitable primary sector company with 12,500 cows on 19 South Waikato farms producing 6.3 million kilos milksolids annually.

He is also a shareholder and director of Crocodile Farms at Tokoroa, with 950 cows producing 540,000kg.

During a long governance career McBride has travelled internationally in markets in Asia, Europe, and Latin America.

He has overseen the finances of billion-dollar enterprises and marketing budgets of hundreds of millions of dollars.

Trinity Lands has assets of $460m in agribusiness.

“I have a good understanding of the strategy and key performance measures that are required for effective marketing and innovation,” he said.

Towards the end of his governance roles in the kiwifruit industry, McBride believes he has the experience, credibility, energy and personal commitment to make a significant contribution to Fonterra.

“I have a strategic and global mindset, very focused on performance and have no interest in petty politics or industry tribalism,” he said.

The complex issues facing the dairy industry include environmental sustainability, the risk of diminishing supply, capital structure and efficiency and increased competition.

Among the key challenges for Fonterra are relationships with the Government and the public and to win back the hearts and minds of its own farmer-shareholders.

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