Governance changes at NZX and PGG Wrightson

Within 24 hours the rural sector has seen Fonterra Chairman, Henry van der Heyden, resign from the board of NZX and former Fonterra Chief Executive, Craig Norgate, resign yesterday as Chairman of PGG Wrightson.

“There will certainly be those among the membership who will say Mr van der Heyden’s decision to resign from the NZX Board is the right one,” says Don Nicolson, President of Federated Farmers.

“Clearly, there was a degree of discomfiture that comes from sitting on the board of NZX when it is embarking upon a possible whole milk powder futures platform and of course, there is Fonterra’s capital structure review.

“Federated Farmers never harboured any doubts that Mr van der Heyden was anything other than exemplary, but for the guy in the cowshed, it created some doubt.

“NZX’s loss is Fonterra supplier-shareholders gain, as Mr van der Heyden will have more time to devote to the Cooperative. Undoubtedly NZX’s board has lost the services of a very able and experienced businessperson.

“I think Mr van der Heyden deserves much credit for waking up corporate New Zealand to the amazing opportunities that exist in agriculture. Not just inside the farm gate but outside of it.

“Getting capital markets engaged with the agriculture sector is important if we are to grow local operations into major companies on a world scale. What Mr van der Heyden has done is to start the ball rolling and builds off the momentum created by the likes of Craig Norgate at PGG Wrightson.

“While a polarising and at times tough figure, Mr Norgate has a strong vision of the future and in an industry of visionaries, that’s no bad thing,” Mr Nicolson concluded.