New CEO predicts bright future
Fonterra's new chief executive, Theo Spiering, has started in his role as head of the world's biggest dairy company.
The 46-year-old Dutchman started his career in European co-operative Friesland and led its merger with another co-op heavyweight, Campina, before starting his own dairy industry consultancy. He takes over from Canadian, Andrew Ferrier.
Despite a jittery global situation, Mr Spiering is confident that dairy markets will hold. He believes that even if the West goes into recession and demand for dairy products is lowered in the short term, the long-term prospects are still good.
He said that Fonterra's strength is in its integrated 'grass to glass' model but that he will also be focusing on identifying overseas 'milk pools' to drive profits.
However, he has no plans to build a branded business to take on the likes of Nestle and Danone in European markets.
"But in South America and Sri Lanka it might not be so difficult," he said.