Fonterra Prioritizes Strong Partnerships With its Farmers
Source: DairyNews.today
Fonterra, a major global dairy company, prioritizes strong partnerships with its farmers, focusing on long-term sustainability and farmer success over short-term profits. This approach has positioned Fonterra as a leader in the Business to Business (B2B) sector, particularly for its farmer-centric model in Australia and New Zealand.
For Victorian dairy farmer Celia Hobbs, joining Fonterra in 2021 was transformative. Fonterra’s Farm Source service not only provided immediate support during a challenging weather event but has since helped her improve productivity and implement environmental management. Farm Source offers extensive resources—real-time data via an app, agronomy guidance, HR and financial planning assistance, and environmental management. This value-added service approach fosters loyalty, with Fonterra retaining 98% of its Australian farmers.
Fonterra also practices financial transparency by publicly declaring its earnings, allowing farmers to understand the financial health and price-setting mechanisms of the company. Additionally, it has established an Australia Suppliers Council for farmer input on strategy, which has strengthened trust and alignment.
Fonterra’s dedication to evolving services and clear communication has paid off; it reported impressive farmer satisfaction, a high Net Promoter Score (NPS), and leadership in foodservice rankings. The company's famous Aussie brands, like Western Star butter and Perfect Italiano cheese, also contribute to farmer loyalty by giving pride to their role in national food production.
Though Fonterra is exploring the sale of its Australian consumer brands, a company spokesperson reassured that the valued farmer relationships are expected to persist under new ownership, reflecting Fonterra’s commitment to a sustainable, farmer-first model.
Fonterra also practices financial transparency by publicly declaring its earnings, allowing farmers to understand the financial health and price-setting mechanisms of the company. Additionally, it has established an Australia Suppliers Council for farmer input on strategy, which has strengthened trust and alignment.
Fonterra’s dedication to evolving services and clear communication has paid off; it reported impressive farmer satisfaction, a high Net Promoter Score (NPS), and leadership in foodservice rankings. The company's famous Aussie brands, like Western Star butter and Perfect Italiano cheese, also contribute to farmer loyalty by giving pride to their role in national food production.
Though Fonterra is exploring the sale of its Australian consumer brands, a company spokesperson reassured that the valued farmer relationships are expected to persist under new ownership, reflecting Fonterra’s commitment to a sustainable, farmer-first model.
