Leadership Changes and Strategic Shifts at Dairy Goat Co-op in New Zealand
Source: The DairyNews
The Hamilton-based Dairy Goat Co-operative (DGC) is undergoing significant leadership changes amidst financial challenges. David Hemara, the former chief executive, departed the co-op a month ago, while chair Campbell Storey is set to step down at the upcoming annual meeting in September.
To address the operational needs during this transition, Tony Giles, a former chief executive, has been appointed as the acting CEO.
Earlier this year, DGC faced criticism fr om farmer shareholders after requesting milk suppliers to reduce their supply by one-third for the upcoming season. Hemara explained that this reduction is necessary to align incoming milk with forecasted product sales for 2024/25 due to changing demand levels, influenced by factors such as declining birth rates internationally and shifts in sales channels, including the Daigou informal sales channel to China.
Furthermore, Hemara highlighted the impact of cost-of-living pressures in many economies and structural changes in the Chinese consumer market, wh ere consumers have increasingly supported domestic brands over the past four years. These dynamics have led to a global imbalance between goat milk supply and demand.
While acknowledging the current oversupply situation, Hemara emphasized the fluctuating nature of the balance between supply and demand over time, with periods of both oversupply and undersupply historically observed in the goat milk market.
The leadership changes and strategic shifts at DGC reflect the cooperative's efforts to adapt to evolving market dynamics and ensure long-term sustainability amidst challenging economic conditions.
Earlier this year, DGC faced criticism fr om farmer shareholders after requesting milk suppliers to reduce their supply by one-third for the upcoming season. Hemara explained that this reduction is necessary to align incoming milk with forecasted product sales for 2024/25 due to changing demand levels, influenced by factors such as declining birth rates internationally and shifts in sales channels, including the Daigou informal sales channel to China.
Furthermore, Hemara highlighted the impact of cost-of-living pressures in many economies and structural changes in the Chinese consumer market, wh ere consumers have increasingly supported domestic brands over the past four years. These dynamics have led to a global imbalance between goat milk supply and demand.
While acknowledging the current oversupply situation, Hemara emphasized the fluctuating nature of the balance between supply and demand over time, with periods of both oversupply and undersupply historically observed in the goat milk market.
The leadership changes and strategic shifts at DGC reflect the cooperative's efforts to adapt to evolving market dynamics and ensure long-term sustainability amidst challenging economic conditions.
