Fonterra is facing ‘bumps in the road’

Fonterra will face ‘‘bumps in the road’’ as the global economy rebuilds after the coronavirus outbreak, but chairman-elect Peter Mcbride is optimistic about the dairy co-op’s future.

‘‘Businesses learn more from challenges than successes and there will be plenty learnt from this,’’ the South Waikato dairy farmer said.

And Mcbride should know. As the chairman of the Zespri board from 2013-18, he led the kiwifruit marketer through a crippling outbreak of the vine disease Psa, estimated to have cost growers close to $1 billion.

He also oversaw a four-year Serious Fraud Office investigation into double invoicing in China; constitutional changes; and the development of a sales and marketing hub in Singapore.

Mcbride said his time at the head of the table with Zespri gave him a different perspective on governance.

‘‘I have strong views around empowering management. This is [Fonterra chief executive]

Miles Hurrell and his team’s company, it’s not for myself or the board to be reaching over them,’’ he said.

‘‘I also learnt a lot about stakeholder management, particularly being there through a really challenging time. There can be tension with stakeholders and you have to be able to manage that.’’

Having a foot in each of the food service, ingredients and consumer camps in several markets had given Fonterra valuable flexibility as the pandemic situation has evolved.

But Mcbride said the co-op would have to continue to be nimble and respond quickly to the changing economic environment and global uncertainty.

‘‘. . . we have operations in several other countries and each of them has a different paradigm and a different response to Covid.

‘‘Our main focus is looking after our people. There will be bumps in the road for our business but I’m optimistic about the future.’’