"There's not the number of cooperatives around ... there's not the training ground there once was," he said.
"We acknowledge we need to do more - we need to lift the standard of governance in Farmlands. We are committed to that and we are investing in it."
To this end, the company had this year joined with cooperative meat processor Silver Fern Farms to run a governance training programme for 24 people over two days.
Farmlands, which returned to profit last year after a $9 million loss in 2015-2016, expected to post another positive result in October, Johnstone said.
Depressed commodity prices and costs around bedding in the merger were responsible for the loss, which was in sharp contrast to the $11m net profit before tax and rebate posted in 2015, and the $23.5m result of 2014. Last year's net profit before tax and rebate was $5.4m.
Revenue, however, held constant at $2b-plus over the challenging period.
Farmlands is one of the country's biggest rural companies with 65,800 shareholders, 82 stores and 1400 staff nationwide.