In an effort to increase value added profits, dairy giant Fonterra has appointed Andrei Mikhalevsky as head of its value added business, Fonterra Ingredients.
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Mikhalevsky will assume the role of managing director, Fonterra Ingredients,on 13 February. John Shaskey will become managing director of Fonterra GlobalTrade on the same date.
The new appointments follow the division of the Fonterra Ingredients into two businesses last year, with Fonterra GlobalTrade specialising in high volume commodity trading and Fonterra Ingredients in value added products.
Announcing the appointments, Fonterra CEO Andrew Ferrier said that the new structure would support an improved value add performance through better focus and accountabilities.
“Increased value added profit is an important target for us. We have an aggressive target this year of an 80% step up in value add profits, and for the long term we need to drive more momentum into our growth in profits,” said Ferrier.
“A good proportion of this year’s step up in performance will come from Fonterra Ingredients, and over the long term we need to see steady momentum in profit growth from both our Brands business and our Ingredients business.”
Mikhalevsky has previously held leadership positions with Symrise, Georgia Pacific and the Campbell Soup Company.
“We now have in the business an excellent balance of skills with Andrei highly experienced in specialist and value add ingredients and John Shaskey with his wealth of experience and knowledge in the global commodities market,” Ferrier concluded.
