Dairy company Fonterra Co-operative Group Ltd has today (Tuesday) announced a series of organisational changes which it says are intended to enhance its innovation and manufacturing capabilities.
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CEO Andrew Ferrier said that innovation and manufacturing excellence were fundamental to the company’s future success in terms of growing value-add and reducing costs.
For this reason both activities would be given greater focus and prominence in the company structure and will now report direct to the CEO’s office. The current Marketing and Innovation division, based in Palmerston North, would be strengthened and become Fonterra Innovation. A new group manufacturing role would be established to have strategic oversight of global manufacturing.
In addition a new Specialty Products division would be created to give Fonterra’s growth businesses the focus and transparency needed to examine the long term potential of this particular segment of value-add activity.
Mr Ferrier said that Fonterra was a young company and it was vital that it continued to evolve to further improve the co-operative’s performance for its farmer shareholders and New Zealand.
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By GlobalData“I am confident that this new organisational structure will better support our business strategy. Our strategy is to be a low cost, efficient dairy ingredients manufacturer with a set of high performing value-add businesses driven by world class innovation in dairy.”
Mr Ferrier also announced that chief operating officer Jay Waldvogel was leaving Fonterra as this role had been disestablished.
“Jay indicated to me some time ago that he and his family were contemplating a return to the United States and this contributed to my decision to make these changes. I am particularly grateful to Jay for his contribution in positioning the Ingredients business for the future. The strength of our Ingredients business is testimony to his efforts.”
John Shaskey, currently director networks, has been appointed managing director Fonterra Ingredients. Bob Major, currently director Marketing and Innovation, becomes director Fonterra Innovation. Alison Andrew remains director Growth Businesses pending further discussion on the establishment of the Specialty Products business. The current director of operations, Max Parkin will be acting director Group Manufacturing while a search is undertaken for this position.
Under the new structure the director Fonterra Innovation, director Group Manufacturing and the managing director Fonterra Ingredients will report to the chief executive officer.
