Van der Heyden catapulted into top job at Fonterra

By PHILIPPA STEVENSON, agriculture editor

The second shock resignation in seven months from the board of giant dairy co-op Fonterra has catapulted Putaruru farmer Henry van der Heyden into the $14 billion company's top job.

John Roadley, the first chairman of New Zealand's biggest company - formed less than a year ago - said yesterday that he would quit after next month's annual meeting.

The unexpected departure comes months after independent director Mike Smith resigned because of concerns about the company's governance.

But industry sources yesterday believed Mr Roadley, 57, had a genuine desire to leave the $190,000-a-year job after the intense work of establishing the company.

The greater surprise was that deputy chairman Greg Gent did not succeed Mr Roadley.

Instead, the job has been handed as an early birthday gift to Mr van der Heyden, who turns 45 next week.

It is Mr van der Heyden's second sudden elevation.

He became chairman of Fonterra forerunner New Zealand Dairy Group in October 1999 when then-chairman Doug Leeder quit over an office romance scandal.

Mr van der Heyden joined the Dairy Group board in 1992, aged 34.

He later described the adjustment from farm to boardroom as enormous, and said the industry had become so sophisticated that he was likely to be the last such greenhorn director.

Yesterday, one seasoned industry observer described Mr van der Heyden, who has a degree in agricultural engineering, as "pretty bright and strong commercially".

Another said he could not think of any farmer director better for the job.

Agriculture Minister Jim Sutton said Mr Roadley had taken Fonterra through challenging times and left it in a position where it could really do well.

"It's now up to the board under Henry van de Heyden's leadership to build on what has been achieved."

Mr van der Heyden moved to Hamilton from his Putaruru farm this year, but said yesterday that was to be closer to his children at boarding school, not in anticipation of the new job.nte

His priorities were to maximise the payout to farmers from a difficult international market, and to focus on achieving the $300 million-a-year benefits from the merger of the companies that formed Fonterra.

He acknowledged the problems the company had experienced, including not picking up milk - mostly on Waikato farms - and said Fonterra had to exceed its shareholders' expectations.

Dairy Farmers of NZ chairman Kevin Wooding said Mr van der Heyden would bring to Fonterra an astute mind and an ability to relate well to farmers.

But he hoped the change in chairman would be the last disruption for some time.

There was still an element of rivalry between the former Dairy Group suppliers and those from Kiwi Dairies, Fonterra's other forerunner, but he hoped that did not extend to the board.

Mr van der Heyden and chief executive Craig Norgate, formerly of Kiwi, had to have a good relationship for the benefit of the company.

"It has to be harmonious to get good performance."

Mr van der Heyden said he was sure Mr Norgate shared his priorities.

"I'm sure Craig and I will get on very well while we focus on those objectives."

Fonterra Shareholders Council chairman Tony O'Boyle said Mr van der Heyden was one of the directors the council had known for some time.

"I look forward to working alongside him."