Fonterra chief executive Miles Hurrell has resigned, after a 25-year career at the dairy giant, including eight years at the helm.
Chair Peter McBride said in a statement to the NZX that Hurrell had decided that the time was right for him to leave the co-operative.
“When he was appointed CEO in 2018, Miles was tasked with leading a reset of the business to turn around Fonterra’s financial performance and rebuild farmers’ trust.
“Under Miles’ leadership, the team has done that and more. From day one, Miles was able to unite the team under a single purpose and drive performance right across the business, setting the Co-op up for the future.”
Hurrell said it had been an incredible privilege to have a long career with Fonterra.
“While it’s not an easy decision to step away, the time is right for both the Co-op and me personally. Fonterra’s entering the next phase in its strategic implementation, which marks a natural turning point for a new leader to step in while I consider what’s next for me.”
McBride said Hurrell has a six-month notice period, which enabled an “organised leadership transition”.
“We are confident we can run a robust selection process and appoint a new CEO in the coming months.”
Hurrell’s decision to step down comes as the cooperative beds in a new strategy, which prioritises high-value dairy ingredients and foodservice businesses and a stronger focus on B2B operations.
That follows the sale of its global Consumer business, including well-known brands, Mainland and Anchor, to French company Lactalis for $4.22 billion.
Fonterra shareholders, who supply the co-operative with milk, are set to receive a capital return of $2 per share, equivalent to around $3.2 billion.
Analysts estimate the sale will deliver about $400,000 tax-free to the average Fonterra farmer.
The sale also means Fonterra will have $1b to spend over the next three to four years in projects to generate further value through its remaining high-performing Ingredients and Foodservice businesses.
Hurrell had been working at Fonterra since November 2000 in various roles, but suddenly found himself promoted to the top job in 2018, following the departure of former CEO Theo Spierings.
Fonterra was in bad shape at the time, heading towards its first annual financial loss after a failed global expansion left it saddled with huge debt and significant impairments.
Hurrell’s first task involved a wide-ranging strategic review with major asset sales such as the co-operative’s 50% stake in DFE Pharma and iconic ice cream maker Tip Top.
It would also sell its two farm hubs in China, a 51% stake in Dairy Partners Americas (DPA) Brazil and close its Dennington milk processing plant in Australia.
Hurrell would also embark on a brutal cost-cutting exercise and then lead the co-operative through a difficult capital structure reform process in 2022.
Fonterra’s financial turnaround was first displayed in September 2023 when it posted a record net profit after tax of $1.6b, followed by a $1.1b net profit announced this September for the 2024 financial year.