agribusiness Opinion is divided on the proposed Ruataniwha Water Storage Scheme. page 21
management B+L NZ workshop hears different views on managing high lambing percentages. page 31
Rural NEWS
finance PGG Wrightson’s goodwill disappears and sees it post a big loss.
page 10
to all farmers, for all farmers
august 20, 2013: Issue 544
Get a move on!
www.ruralnews.co.nz
Co-op’s sacrificial calf? SU DES H KISSU N
THE MEAT companies need to speedily resolve the issue of industry reform as the new season is kicking off, says Beef + Lamb NZ chairman Mike Petersen. Rural News reported last issue that Petersen had given the reform group Meat Industry Excellence a hurry-up during the Beef+Lamb NZ monthly conference call. But Petersen says he was referring to industry talks now being held by meat companies. A speedy resolution by the meat companies was needed so a package could be tabled before farmers, says Petersen. In answer to questions from Rural News last issue, MIE head Ross Hyland said they would not be rushed, but had admitted they had heard comment that they had “gone quiet”. They were in fact getting quality systems in place so they could move forward in a professional manner. Meanwhile, Petersen also clarified that Beef+Lamb had offered to fund analysis of any proposals put forward from meat company talks to ensure it is in the best interest of farmers. They had not offered to fund work by MIE on any particular proposal. – Pam Tipa
sudeshk@ruralnews.co.nz
FONTERRA EXECUTIVE Gary Romano’s fate was sealed during the early stages of Fonterra’s botulism scare. With chief executive Theo Spierings in China on damage control talks and chairman John Wilson mothballed by the co-op’s communication gurus, it was left to Romano to face the media. At Fonterra’s first media conference on Saturday morning, August 3, Romano uncomfortably fended off questions from journalists. An engineer by profession, and an operational guru,
Romano found it hard to answer questions on the co-op’s brands business and the FCMG (fast consumer moving goods) sector. He wouldn’t tell journalists which infant formula brands were affected, leaving New Zealand mothers confused about safe infant formula for their babies. His appearance on Campbell Live two days later didn’t do him any favours. Romano inadvertently told John Campbell all Karicare products from Nutricia, owned by French dairy giant Danone, were affected. Next day, Fonterra and he apologised. And it was under Romano’s watch, as
managing director of NZ Milk Products, that a dirty pipe at the Hautapu plant in Cambridge contaminated whey protein concentrate (WPC80) with a strain of Clostridium, which has the potential to cause botulism. Fonterra shareholders are mum on Romano’s departure. He was widely respected by Fonterra farmers and the industry. Two years ago he was touted as a possible chief executive before Spiering’s appointment. In October Romano was scheduled to speak at the World Dairy Summit global dairy leaders’ forum in Yokohama, Japan. Fonterra has given no reason for
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Romano’s departure. It raises the question whether he has been sacrificed for what appears to be the co-op’s lack of a clear strategy to deal with crisis management and shortcomings in communication with regulators, consumers and customers. Federated Farmers Dairy chairman Willy Leferink believes Romano took “personal responsibility” for the failure at the Hautapu plant. “He was head of the department where it all happened and Romano has made a personal sacrifice, Leferink told Rural News. “It doesn’t reflect on his incompetence but his team’s. They failed to live up to society’s expectations.” Fonterra chief executive Theo Spierings said in a brief statement he accepted Romano’s resignation. “Gary has made a significant contribution during his time at Fonterra and we respect his decision,” says Spierings.
Running up the hours
THE NEW chairman of the Agricultural Aviation Association Alan Beck beside his beloved Bell Jet Ranger helicopter, which he bought in 1977. The helicopter – still flying –was only the second in New Zealand used for agricultural work. Beck, based at Eltham, Taranaki, has at least 17,000 hours flying (almost all on helicopters) to his name. Beck says 90% of his clients are dairy farmers in Taranaki, Waikato and Bay of Plenty. More page 14