New Zealand dairy co-op Fonterra has announced the resignation of CEO Miles Hurrell after 25 years with the business, including eight years at the helm.
“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,” said chair Peter McBride.
“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.”
Changes at the co-op under Hurrell’s leadership include the recent decision to sell its global consumer and related businesses to French dairy group Lactalis for NZ$4.22bn.
All required regulatory approvals have been received and the separation of Mainland Group from Fonterra is complete, Fonterra has said. With all conditions of the sale satisfied, Fonterra and Lactalis will now proceed to complete the transaction.
The co-op was facing challenges when Hurrell took over in 2018 and reported a record loss in 2019 as it hit trouble with its operations in Brazil and China. He is credited with a turnaround in the co-op’s performance and last year it posted an operating profit of $1.7bn.
“On behalf of the board, I thank Miles for his courageous leadership,” added McBride. “He has overseen a significant strategic reset, focused on getting the co-op back to its core strengths. In doing so he has helped lift Fonterra’s financial discipline and built the strong foundations the co-op has today.
“I know I echo the sentiment of farmers when saying that Miles will leave with sincere thanks for his 25 years of loyalty and best wishes for the future.”
Hurrell said his career with the co-op has been “an incredible privilege”, adding: “When I took the role of CEO, I understood our financial results are not just numbers but the livelihood of thousands of New Zealand farming families. I have always felt a great sense of responsibility to do what’s right for farmers and I believe the Co-op is now in a really good place.
“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.
“I know that the business will be in good hands. There’s an exceptional team of people who will carry the Co-op forward and continue to drive value for farmers.”
Hurrell will now serve a six-month notice period to enable an organised leadership transition.
“Board and management regularly discuss succession as part of good governance practices,” said McBride. “We are confident we can run a robust selection process and appoint a new CEO in the coming months.”
