Norgate's postscript a late-night ramble

By SIMON HENDERY

Crafted in the dead of night as his last hours at Fonterra ticked by, Craig Norgate's final newsletter to shareholders and suppliers is a mix of economic insight, philosophical wisdom and fond farewells.

It includes a quote from Buddha, between a plug for the company's record of innovation and an explanation of why it can do little to influence the commodity milk price.

When the last of the former chief executive's fortnightly missives landed, it was almost like a message from beyond the grave. Norgate had already left the building.

"A week ago I sat down to write my normal update hoping that I'd have something positive to tell you about progress on European trade reform," the newsletter reads.

"It's great to be able to report progress on that front, but I didn't expect to be incorporating it into what will be my last message to you!"

A matter-of-fact commentary on a range of issues follows, including his thoughts on EU agricultural policy reform, the WTO Doha round, and the firming of the global market for cream product.

Then he gets personal: "It's been an absolute privilege to spend so long in leadership roles in this great industry, and to have [had] a hand in creating what is now on its way to being a truly great company."

Cue the Buddha quote: "Your work is to discover your work and then with all your heart to give yourself to it."

And, 945 words after the start, the sign-off: "Kind regards, Craig."

In what could be a bid to make it easy to reach him with job offers, the email gives his cellphone number, fax number and home email address.

But wait, there's more - in the form of a postscript headed "More parting thoughts".

There are observations on trade barriers, added value, and capital structure, and the merger, which "is behind us ... Staff are not looking back - they are looking forward".

And some intriguing thoughts on payout comparisons: "We could beat Westland tomorrow - if we were prepared to drop milk powder prices to a level that reduced returns to the same level as cheese.

"Likewise, we could beat Tatua - if we were prepared to produce volumes of products such as lactoferrin and reduce prices to commodity levels.

"Neither action would enhance your returns. It may make us look better in comparative terms, but as far and away the largest player in the market, our focus should be on maximising overall returns - even if that means others benefit more."

Then, 898 words into his postscript, and with a final thought on the importance of the customer, he signs off a second, final, time.

"Lift your horizons past the farm gate, past Fonterra to your customers and markets - that is where your success lies. Thank you. Ka kite ano."