Fonterra's Ferrier elevates two executives in management shakeup

Wednesday 24th June 2009

Fonterra Cooperative Group chief executive Andrew Ferrier tapped two executives for broader roles at the world’s biggest dairy exporter as part of a move to consolidate the core business units into one.

Gary Romano will head up the consolidated business unit, Fonterra Operations and Trade, which will be responsible for everything from Global Trade to Milk Supply and government relations. Andrei Mikhalevsky will become managing director of Fonterra Global Ingredients and Foodservices.

Romano and Mikhalevsky will report directly to Ferrier. The changes mean direct reports to the CEO reduce to seven from nine. Barry Harris, Fonterra's director of milk supply, will leave the company at the end of next month, while Kelvin Wickham, head of Fonterra GlobalTrade, will now report to Romano.

“For our strategy to be successful, Fonterra’s core must continue to get more and more efficient,” Ferrier said in the statement.

The shakeup comes as Fonterra, which has annual sales of some $17 billion, prepares for leaner times. Fonterra last month forecast a 13% drop in milk payments for the 2010 season, citing a stronger New Zealand dollar and protectionist measures from rival producers such as the US, which has re-introduced export subsidies.

The price of milk powder slumped 12% in Fonterra’s latest online auction, stoking concern moves by Europe and the US to support their farmers will undermine any recovery in dairy prices. The average price of milk powder sank to US$1,886 per metric ton, according to results posted on the GlobalDairyTrade website, down from US$2,144 last month. In New Zealand dollar terms, prices tumbled 19%.

Businesswire.co.nz

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