Fonterra chair Peter McBride said Hurrell had decided the time was right to move on after eight years leading the organisation.
“When he was appointed CEO in 2018, Miles was tasked with leading a reset of the business to turn around Fonterra’s financial performance and rebuild farmers’ trust,” McBride said.
“Under his leadership, the team has achieved that and more, uniting the organisation around a clear purpose and improving performance across the business.”
Leading a critical reset
Hurrell became CEO in 2018 after the departure of former chief executive Theo Spierings, at a time when the co-operative was facing serious financial challenges.
Fonterra was heading toward its first annual loss following a period of aggressive global expansion that left the company carrying significant debt and large asset write-downs.
In response, Hurrell launched a strategic review aimed at refocusing the co-operative on its core strengths. The plan included a series of asset sales and operational changes designed to strengthen the balance sheet and improve financial discipline.
Among the moves were the sale of Fonterra’s 50 percent stake in DFE Pharma and the sale of its iconic ice cream brand Tip Top. The co-operative also sold farm hubs in China, divested a 51 percent stake in Dairy Partners Americas Brazil, and closed its Dennington milk processing plant in Australia.
Hurrell also led a significant cost-cutting programme and oversaw a major reform of the co-operative’s capital structure in 2022.
Financial recover
The impact of the changes became evident in recent years, with Fonterra reporting strong financial results after several difficult periods.
In September 2023, the company posted a record net profit after tax of $1.6 billion. That performance was followed by another strong result, with a net profit of $1.1 billion reported for the 2024 financial year.
Hurrell said leading the co-operative had been a privilege and that the decision to step aside was not an easy one.
“When I took the role of CEO, I understood our financial results are not just numbers but the livelihood of thousands of New Zealand farming families,” he said.
“I have always felt a strong responsibility to do what’s right for farmers, and I believe the co-operative is now in a very good place.”
He said the organisation was entering the next phase of its strategy, making it a natural moment for new leadership.
Leadership transition underway
Hurrell will remain in the role during a six-month notice period to ensure an orderly transition while the board searches for his successor.
McBride said the board regularly reviews succession planning and was confident a robust recruitment process would identify the next leader in the coming months.
He thanked Hurrell for his service and leadership. “Miles has overseen a significant strategic reset and helped build the strong foundations the co-operative has today,” McBride said.
“I know many farmers share our appreciation for his dedication over the past 25 years.”
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