New Zealand dairy giant Fonterra has appointed Miles Hurrell as interim chief executive with immediate effect.

Hurrell, who takes over from outgoing CEO Theo Spierings, has served as chief operating officer of Farm Source, Fonterra’s agribusiness division, since 2016.

Hunt

Fonterra had been on the hunt for a new CEO since last November after announcing Spierings would step down from his position in 2018 following seven years at the helm.

However, Fonterra says it has now suspended this search in light of recent changes at board level after long-serving chair John Wilson stood down for health reasons and was replaced by John Monaghan.

We will take all the time we need to find the right person

“The board is clear that it is not best practice to have the chairman and CEO stand down at the same time,” said Monaghan.

“I have agreed with the board that we will stop the global CEO search while we review the co-op’s current portfolio and direction. Appointing a new CEO is the most critical decision a board will make. We will take all the time we need to find the right person,” he added.

In the meantime, Hurrell will take over as Fonterra CEO from the beginning of September. The news comes just a week after Fonterra cut its forecasted milk price for the 2017-2018 milking season from NZ$6.75/kgMS (26.9c/l) to NZ$6.70/kgMS (26.7c/l).

Fonterra also decided to retain the dividend it pays to shareholders. The co-op said it expected the dividend payment to shareholders will be just 10c per share, which was already paid out in April.