Fonterra appoints new CFO as it mulls $1.2bn float of Australian business

Chris Rowe will act as Fonterra’s chief financial officer until a permanent replacement is found, with the group’s CEO talking up his M&A expertise.

Fonterra, the world’s biggest dairy exporter, has appointed a veteran of the business as acting chief financial officer as it considers spinning off its Australian division.

Chris Rowe, who joined the New Zealand-headquartered co-operative in 1988, will replace Marc Rivers, who flagged his departure in March after serving more than four years in the role.

The appointment comes as Fonterra has been mulling an IPO of its Australian arm – valued at more than $1.2bn – as part of an ownership review and the co-operative progresses with divesting its Chile and Brazil operations.

Fonterra chief executive Miles Hurrell said Mr Rowe was a “highly competent leader”, who has also worked across Fonterra’s Australian business, which owns brands including Western Star, Perfect Italiano and Mainland as well a Bega Cheese licensing deal.

Mr Rowe has had a number of commercial and finance leadership roles, and is currently Fonterra’s group finance director.

“Chris is a highly competent leader, who has considerable knowledge of the Co-op and the management of its physical and financial portfolios, as well as its mergers and acquisitions,” Mr Hurrell said. “I am pleased that Chris has agreed to act as our CFO, and he will continue to provide strong direction and leadership while we continue our recruitment process for a permanent CFO. The recruitment process for a permanent CFO is well underway and I hope to announce the successful candidate in the coming months.”

Mr Rowe will assume the role of acting CFO from October 1, with Mr Rivers staying on as a “strategic advisor to the chief executive” until he leaves the co-operative later this year.

Fonterra Australia factory at Wynyard

Fonterra announced an ownership review of its Australian business last September following China targeting a range of Australian soft commodities, including barley, beef, wine and lobsters, with trade bans or tariffs.

The trade skirmish has prompted companies such as A2 Milk, which is dual-listed on the ASX and NZX, to highlight their heritage in New Zealand, which has avoided China’s wrath.

Fonterra has also been pumping up its New Zealand operations, with the ownership review part of a strategy to “differentiate New Zealand milk further on the world stage, with the aim of getting more value”.

China is Fonterra’s biggest single-country revenue driver, with sales hitting $NZ6.1bn ($5.5bn) last year. Whereas, Fonterra’s Australian operations – which began 16 years ago after it took over beleaguered Victorian milk processor Bonlac – have steadily become more domestic-focused.

“There is a reliance to some extent on that China market,” Fonterra Australia managing director Rene Dedoncker said at the time about the co-operative’s New Zealand operations.

“And that’s where I think we’re seeing that geopolitical play, and the New Zealand government is doing what they need to keep the corridors open with China.”