Former Fonterra boss Theo Spierings dies

The former high-profile and controversial head of dairy co-operative Fonterra Theo Spierings has died.

A brief statement released through the consulting company he worked for said Spierings died over the weekend in the Netherlands after a short illness.

“His legacy and the impact he had on those he worked with and who knew him will be remembered fondly.”

“Theo’s family has asked for privacy during this difficult time. They appreciate the outpouring of love and support from around the world during this sad time.”

Spierings, a 30-year veteran of the European and New Zealand dairy industries, returned to Holland following his departure from Fonterra in 2018.

He was appointed to Fonterra in 2011, the first decade after it was created through the merger of the country’s two largest dairy producers and the Dairy Council.

Spierings previously headed Dutch dairy cooperative Friesland Foods and led its merger with Campina in 2008.

Global ambitions

Spierings’ appointment in 2011 was widely welcomed by the dairy industry as it brought a wealth of dairy co-operative experience and a fresh perspective.

Fonterra was still rebuilding its reputation and position following the melamine milk scandal and failed investment in Chinese dairy company San Lu in 2008.

However, he was committed to Fonterra’s global ambitions and its expansion into China, Latin America and Asia, which led to joint ventures, acquisitions and direct investments in Chinese dairy businesses.

However, milk prices fluctuated during this period, exacerbating tensions between payments to farmers and the cooperative’s business operations and profitability.

Fonterra experienced another contamination threat in 2013 when it recalled products worldwide due to suspected botulism contamination.

The resulting panic again damaged Fonterra’s reputation and prompted a major confrontation with leading client Danone, as well as a government investigation.

High salary

The topic of Spierings’ salary was never far from the discussion throughout much of his tenure, with his ever-increasing multimillion-dollar salary and incentives contrasting with many farmers struggling to make ends meet and job losses in Fonterra.

Fonterra has always maintained that Spierings runs the country’s largest business and should be paid accordingly, although Spierings himself asked for a pay freeze in 2015, when the salary was already approaching $4 million.

His departure was reported in Australian media in 2016, with speculation that he would be replaced by then Air New Zealand chief executive Christopher Luxon.

By the time he left in 2018, he was earning $8 million including bonuses, just as Fonterra was about to announce catastrophic financial losses in 2018 and 2019.

Spierings said he was looking for a better job, not a bigger one.

A private memorial service will be held in the Netherlands.