August 29, 2017

Fonterra hailed as New Zealand's top co-op

Fonterra has been judged as New Zealand's top co-operative business of the year, and praised for a "stunning financial turnaround, generous social responsibility programmes and a high profile campaign proudly proclaiming its Kiwi farmer-owned, co-operative status."

The sector's peak body Cooperative Business New Zealand (CBNZ) made the award at a function in Auckland, New Zealand, in August.

Shareholders' Council Chair Duncan Coull, who collected the award, said Fonterra's farmers should take pride in the special recognition for their co-op.

"Our farmer shareholders set themselves high standards, and it's their daily hard work and commitment that drives the success of the co-op. I also want to recognise the energy and contribution of our staff in helping build a co-op that returns such value to shareholders, local communities and the New Zealand economy," Coull commented.

In making the award, CBNZ CEO Craig Presland said Fonterra had achieved a stunning financial turnaround over the past 12 to 18 months.

"With its 2016/17 payout forecast to be at least 50% up on the year before, this injects an additional $3.6 billion into the (New Zealand) economy and will benefit many fellow co-operatives significantly," Presland remarked.

He also added that Fonterra has completed a comprehensive co-operative governance review and raised its profile with the public so that it is now better understood as a member-owned co-operative "and not a corporate."

"(Fonterra) has also continued to generously support New Zealanders within the spirit of Concern for Community, a key co-operative principle. Its Milk for Schools programme, which is now in its fifth year, is the largest social responsibility programme ever driven by a Kiwi commercial business. The more than $10 million a year initiative currently benefits more than 140,000 kiwi kids each school day," Presland said.

CBNZ represents the growing business sector of co-operatives, mutuals and societies, which employ more than 48,000 New Zealanders and generates over NZ$43 billion (US$31 billion) a year in revenues for the country's economy. The amount is almost 20% of New Zealand's GDP while almost one-in-three locals is currently served by a co-operative, mutual or society as a member.

- Fonterra