A world leader in the dairy industry, Fonterra is taking engagement with its farmer members to a new level. The New Zealand-based co-operative has set out a new farmer centric strategy that includes offering additional support and benefits to members.
As part of this strategy, Fonterra will rebrand all of its 67 RD1 stores as NZ Farm Source and introduce four new stores. It is also launching new digital technology and providing online support for farmers.
Present at the launch of the first Farm Source hub in Methven, Fonterra Chairman John Wilson said this initiative was based on the co-operative’s principle of acting “together as one”.
“We have been talking to our farmers a lot about what we can do to further support them and their businesses. We challenged ourselves to come up with ways we could get in behind them as only a co-operative of our strength can do.
“Co-ops have always been about unity and collective strength and we have a lot of both. This is about putting it to work for our farmers so we all benefit. With Farm Source we are taking our relationship with our farmers to a whole new level through connected services and support systems developed for them.”
Chief executive Theo Spierings added that Farm Source was not a just programme or a collection of benefits.
He said: “Farm Source is about connecting farmers with the full strength of our Co-operative. Ultimately, we see Farm Source as setting the benchmark when it comes to supporting farmers and providing exclusive benefits beyond the Milk Price”.
Most Farm Source hubs will be within 25km of 90% of Fonterra Farms. They will have a regionally organised support team for farmers including area managers, shareholders’ councillors, sustainable dairy advisors, technical sales reps, food and safety advisors and local networkers.
To reduce costs for farmers, Fonterra is also launching a rewards scheme that will enable members to earn Farm Source Dollars whenever they spend with Farm Source and its partners. The farmers will also gain access to financial tools for managing shares, capital and business and an online platform to manage their business with the co-operative.
Cooperative Business NZ welcomes the Fonterra Farm Source initiative, with CEO Ian Macintosh describing it as "an outstanding example of the co-operative spirit in action".
He said: “Farm Source plays to all the strengths of the co-op model: genuine member engagement, innovation and shared success. Well done once again to Fonterra for showing us all – and its farmers in particular - the tangible benefits of being part of a co-op.”
Ian Macintosh says the NZ dairy sector is attracting deserved attention as the country’s economic backbone and a shining example of innovation.
He added: "In a recent speech to the influential Trans-Tasman Business Circle in Auckland, chief executive of major bank BNZ, Anthony Healy, singled out two longstanding Kiwi co-ops – Tatua Dairy and the Dairy Goat Co-operative - as leading examples of adding value to what we produce in New Zealand.
“Both co-ops have made an outstanding contribution to their local communities and national economy for many years, with Tatua celebrating its centenary this year. It’s testament to the co-op model that their innovative approaches have endured well into the 21st century, and attract sustained success and recognition.”
Picture: Fonterra milk truck (c) ChameleonsEye / Shutterstock.com
