Fonterra head weighs in on milk price debate

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Wed, 28 Sep 2011 7:00p.m.

Balancing act: Farmers want maximum returns, consumers want cheap milk

Balancing act: Farmers want maximum returns, consumers want cheap milk

The new head of Fonterra is Theo Spierings. He's been in the job three days, his predecessor earned $5 million a year, and as head of our biggest company, and the world's largest dairy exporter, he will eventually have a profound impact on the life of this country.

So, who is he?

He's worked in the dairy industry for 25 years, he ran a Dutch dairy giant, his nickname is "the milkman", and he wants you to drink milk.

But here's where things get interesting.

Theo Spierings believes people will drink milk if it's, quote, "available and affordable".

What does that mean in the context of the ongoing debate about what we pay for milk here, and when farmers want maximum returns, and consumers want cheap milk, how does he get that balancing act right?

Watch the video.

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Comments

29 Sep 2011 06:41p.m.

Pieter wrote:

Yes I agree Milk has to be affordable for all ! But Milk subsidised to the New Zealanders, by their farmers ? What 's next ? Gold subsidised, Fruit subsidised, Oil subsidised,Coal susidised,Meat susidised, Steel subsidised, Wood subsidised,Spuds subsidised, Botteled water subsidised,and the list can go on !!! Yes I am a Farmer. Oh Steinlager that would be nice.

29 Sep 2011 06:28a.m.

Jax wrote:

5 million a year compared to the truck driver or factory worker lucky to be earning 50k a year. Is the CEO 100 times better/more important than the maintenance man at a milk factory?

Wouldn't it be nice to see a kiwi in charge of NZs biggest company?

28 Sep 2011 11:27p.m.

MIKE DAVIS wrote:

Dear John, while i realise that a media person does not need an economics degree to front a prime time TV programme.Nor ,obviously does he need to have any knowledge of nutrition.However considering the ability to manipulate public opinion I would expect a good media person to at least pay some respect to the facts around the subject of his interview and perhaps even mention some of them:eg: An appropiately qualified and independent organisation has found that Fonterras milk pricing is fair,Fonterra has frozen the milk price, other imitation products are more expensive than milk,milk costs considerably more to produce than Coke, petrol,beer etc and has a much shorter shelf life(hopefully your viewers aren/t that stupid that they cant differentiate the nutritional value of milk from these other liquids).There are many other facts and positive comparisons that could be made about milk ,but facts and any positive aspects to the production and processing of milk ,particularly where Fonterra is concerned is not likely on your show John,is there.You are frequently stirring up anti farming sentiment when New Zealanders need to work together to benefit, ,from the success of one of our best industries and understand how this has been achieved, instead of creating division by your show.And yes, as you constantly remind us, the $5m CEO.Well,thats just a case of tall poppy syndrome. We NZers do tend to be a bit small minded but I suspect a carefull analysis of the facts would show that Andrew Ferriers positive contribution to Fonterra and NZ would stand up to comparison from a global or national perspective.Perhaps you could publish your salary and perceived value to your country,John

28 Sep 2011 11:07p.m.

Kelly wrote:

I was in aussie in february this year and it was $3 for 3 litres of milk at the supermarket. A darn site cheaper than here :/

28 Sep 2011 08:49p.m.

Dazza wrote:

I can't figure out what all the fuss is. I can buy Dairydale milk at the local supermarket, the local dairy and the local petrol station for $3.60 for 2 litres. That is around the same price that was mentioned for milk in Aussie and Dubai on Campbell live tonight. Shop around and don't buy the expensive stuff and you will find the prices drop.