Fonterra chief executive Miles Hurrell has announced he will step down from the role, saying the timing is right as the co‑operative enters the next phase of its strategy.
Co-operative group chairperson Peter McBride said Hurrell had decided after 25 years at Fonterra — eight as chief executive — that it was the right time to leave.
“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.
“Under Miles’ leadership the team has done that and more.”
Hurrell’s departure comes as Fonterra completes a significant strategic shift, including the unconditional $4.22 billion sale of its global consumer brands — including Anchor and Mainland — to French dairy giant Lactalis.
The divestment, backed overwhelmingly by farmers last year, was expected to result in a major capital return to shareholders.
McBride thanked Hurrell for his “courageous leadership”, saying the co‑operative was now strongly positioned for the future.
Hurrell said it had been an incredible privilege to have a long career with Fonterra.
“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,” he said.
“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.”
Hurrell said the business was 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 has a six-month notice period, with McBride saying the appointment of a new chief executive would take place in the coming months.
1News has approached Hurrell for an interview.
The morning’s headlines in 90 seconds, including the petrol stations with no petrol, and why Benjamin Netanyahu’s been forced to deny he’s dead. (Source: 1News)
‘A sell-out globalist company’
NZ First leader Winston Peters, who opposed the sale of Fonterra’s consumer business, took aim at it and Hurrell.
“Hurrell has sold off almost every consumer brand since he started, leaving Fonterra as a commodity price taker, not a market maker. Their decision leaves serious questions for New Zealand about what we must do to protect dairy manufacturing in our country as a result of Fonterra’s dereliction of duty.”
He accused them of going from “a propped up nationalist company to a sell-out globalist company”.
In response, Fonterra said Hurrell “will not receive any exit payments in addition to his annual remuneration package, which includes his base salary, short-term incentive calculated on the basis of the Group scorecard, and long term Alignment Rights”.
“As an eligible senior leader, Miles has received Alignment Rights grants over the last several years. Miles’ grants will remain on issue and like other senior leaders, Miles will receive payments under his Alignment Rights entitlements for a period of time.
“Nor is there bonus payment for management team members tied to the completion of the transaction or outcome of the shareholder vote.”
It also said it had not announced any job cuts last week.