NZ: Graham Stuart to leave Fonterra

By: just-food.com | 31 May 2007

New Zealand dairy cooperative Fonterra has announced that group director for strategy Graham Stuart is to leave the company to become chief executive of New Zealand's largest seafood concern Sealord.

Fonterra CEO Andrew Ferrier said the New Zealand fishing industry stood to benefit from Stuart's experience in export markets. "While we regret that we are losing Graham from the dairy industry, we appreciate that this is an excellent opportunity for him personally," Ferrier said. "Graham has made an outstanding contribution to the dairy industry, and in particular in the role he played in the formation of Fonterra."

Ferrier added that he expected to make an announcement regarding the management of Fonterra's strategy and growth activities in the next few weeks.

While Fonterra and Stuart have parted on good terms, the news is a blow to the cooperative as it follows the recent departure of two other key executives. Fonterra Brands chief Sanjay Khosla joined rival dairy company Kraft in January, while managing director of Fonterra GlobalTrade John Shaskey announced last month that he was leaving the company.

Fonterra also received another blow yesterday (30 May) when it lost an appeal lodged at the Supreme Court by New Zealand's Commerce Commission over the fixing of the price of raw milk.

The ruling, which overturned a series of decisions in lower courts in the co-op's favour, effectively gives the Commerce Commission the power to intervene in calculating milk prices.

When Fonterra was created in 2001, the New Zealand government set down regulations requiring it to supply a certain amount of milk to rival processors, and stipulated a formula for the price which Fonterra could charge for that milk. But the Commerce Commission has since taken issue with the way Fonterra has calculated the price.

Companies: Fonterra, Kraft