By LIAM DANN
Fonterra was handed a much improved report card from its shareholders council yesterday.
But council chairman John Monaghan said results from its consumer business New Zealand Milk had, once again, fallen well short of expectations.
The council, which represents Fonterra's 13,000 farmer shareholders, provides a detailed review of Fonterra's latest
results in its latest annual report.
Monaghan concluded that farmers were pleased with what had been a "dominantly positive year for Fonterra".
The final payout of $4.25 per kg of milk solids reflected a solid performance.
The quality of information the council received from Fonterra had also improved.
But Monaghan said New Zealand Milk had continued to underperform.
After initial concerns about the length of time it was taking to find a new leader for the New Zealand Milk business, Monaghan said he was pleased with the appointment last month of brand expert Sanjay Khosla. But he still had concerns about the length of time it was taking to find a chief financial officer to replace Graham Stuart.
Fonterra management does not comment publicly on the views expressed by the council in its report. Privately, the managers are likely to be pleased with the report's approving tone.
Last year, the council said Fonterra had failed to add economic value for shareholders and parts of its business were "mediocre".
