Fonterra’s business update

Fonterra Co-operative Group Limited has provided an update on the business review it announced in March this year.

The initial phases had looked at the entire business in detail and had identified potential areas, including significant initiatives in procurement, business operations and working capital, where the Co-operative could improve. The Co-operative’s leadership is now building these opportunities into defined plans that will drive further improvement across the business.

Fonterra chief executive Theo Spierings says, “We have the right strategy and the long-term future of dairy is sound, however the world is changing and global dairy markets are increasingly volatile. To keep ahead of the game, we need to be more agile, reduce costs and generate value.”

As part of the review, Fonterra has begun consulting staff on proposals to streamline its business structures.

Fonterra will provide an update on the impact to its business structures following completion of consultation, which is expected later in July.