Case Studies By Service Area
Policy & Issues Management
Dairy Industry Restructuring
“The new frontier”: establishing Fonterra in New Zealand.
The scope
Fonterra Dairy Cooperative – New Zealand’s largest and only global-scale company – was established in 2001. Its establishment required the design of a new regulatory regime for the dairy industry and the passage of special legislation (Dairy Restructuring Act 2001) to provide for the merger of what were then New Zealand’s two largest dairy cooperatives and the New Zealand Dairy Board.
Our Involvement
MartinJenkins director Michael Mills was engaged by government to help manage the development of policies and legislation required to implement the restructuring. This included: project management of policy and regulatory design work, significant input into the policy advice to government ministers, consultation with dairy industry executives and stakeholders, drafting and select committee support for the Dairy Industry Restructuring Bill 2001, and advice to the government on restructuring the Livestock Improvement Corporation.
MartinJenkins director Doug Martin was also called upon to manage and oversee the independent valuation of New Zealand Dairy Board shares in existing companies, as provided for under the restructuring legislation. This was a crucial step in the process – as the mandatory buy-out of these shares was a government requirement for approval of the merger.
The Outcome
Fonterra Dairy Co-operative was established within one year of the government’s decision to support it. This was only possible because of the success of the policy and legislative process that provided the framework required to establish Fonterra, and which enabled ongoing competition in the processing and sale of milk products.
The MartinJenkins Difference
The launch of Fonterra was a critical development in New Zealand’s economic history – and it required a team with vision, confidence and experience. The MartinJenkins directors were identified by New Zealand government agencies as two individuals with the necessary reputation, experience and knowledge of government policy and regulatory processes necessary to assist in this important task.
