He told the My Connect conference of farmer-shareholders in Dunedin the previously wide strategy – “a mile wide and an inch deep” – confused many people.
“We were all things to all people, serving all markets with all products.
“We had to do that to find a home for the growing milk supply.
“Now that milk production is relatively flat we can be more selective.”
A simplified strategy will also make it more effective.
The reset will begin by reflecting the passion and energy farmers put into their animals, pastures and the environment and taking it offshore.
Grass-fed origin and the company seal of Trusted Goodness will feature.
“Sustainable includes happy cows, which resonates with Asian consumers in particular.
“Right now, sustainable products sell at four times the rate of conventional and we have 85 customers, many of them multinationals, that demand sustainability criteria.”
Hurrell said the recent re-routing of tanker pick-ups in Waikato for a man with a rare syndrome and many adverse effects showed Fonterra’s social responsibility side.
“You farmers do that sort of thing every day and so do our staff members.”
Its economic objective under the sustainable headings is to deliver decent returns on capital as well as milk prices.
Research and innovation will be re-targeted when the new strategy is known.
