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Home / The Country

Baptism of fire awaits Fonterra outsider

Liam Dann
Liam Dann
Business Editor at Large·
26 Jun, 2003 12:34 PM2 mins to read
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By LIAM DANN primary industries editor

Fonterra's new Canadian chief, Andrew Ferrier, will go straight into the firing line when he arrives in September.

Ten days after he steps off the plane, the relative unknown must front up to dairy farmers at the annual general meeting.

After a huge drop in milk payouts
this year, they will expect big things from the 44-year-old sugar industry expert who beat Craig Norgate for the top job this week.

Dairy Farmers Association chairman Kevin Wooding said farmers would be prepared to give Mr Ferrier a fair go. "They'll be polite."

But he would need to recognise the difference between a corporate and a farmer co-op.

Mr Ferrier is under no illusions about his task. New Zealand's largest company, accounting for about 20 per cent of all exports, has been dogged by political infighting since it was formed two years ago.

"I'm aware there is a fair amount of politics," he said. "My role is to try to break down the disagreement."

He is almost a complete unknown in New Zealand and does not have a particularly high profile in Canada.

Fonterra chairman Henry van der Heyden went on the offensive yesterday to dispel comparisons with another Canadian - Maori TV chief John Davy, who was sacked for making false claims in his resume.

"Throughout this process we've done extensive reference checks," Mr van der Heyden said, adding that the board consulted several business leaders in Britain and Canada.

Fonterra's headhunters first approached Mr Ferrier in March, attracted by his background in the North American sugar business.

Until 1999 he headed the North American division of Tate & Lyle, the world's largest sugar company, taking part in heavyweight trade talks with the US Government.

Since then he has run a public company called GSW that sells plastic guttering and water heaters. It has a turnover of $500 million, compared with Fonterra's nearly $14 billion.

Mr Ferrier stressed that he would bring energy and strong motivational skills to Fonterra. "I love to lead and ensure we have strong people ... people who like to win."

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