• Co-op & Prosperity

Rural governors critical to success of New Zealand co-operatives

  • Co-op & Prosperity

Co-operative business models form a major part of New Zealand’s economy.

According to the New Zealand Institute of Directors, the total gross revenue of New Zealand’s top 30 co-operativesʼ represents approximately 20% of the country’s gross domestic product.

Farmer or supplier ownership and control is a core tenet of many of these co-operatives, so it is critical that a pipeline of strong, capable governors come through each generation to lead the various organisations.

Historically, New Zealand had a large number of smaller agricultural co-operatives that provided introductory governance roles for rural leaders, many of whom went on to serve on the Boards of our larger agribusinesses. They were breeding grounds for business acumen and governance skills, and as such, more formal governance programmes weren’t a natural pathway.

Fast forward 20 years and the amalgamation of these smaller co-operatives into larger entities like Fonterra means the industry now relies on a more formal pathway of training and development to bring forward leaders from within the farmer base.

Formal programmes such as Fonterra’s Governance Development Programme are new avenues for rural governors to build their skill sets.

Kylie Leonard is one example of the pipeline in action.

A 2023 Nuffield Scholar and a graduate of Fonterra’s Governance Development Programme back in 2021, Kylie has held a number of governance positions both in the non-profit and business sectors. She is a current Fonterra Co-operative Councillor, the 2018 Dairy Woman Community Leader of the Year and was a finalist for Dairy Woman of the Year in 2019.

Kylie says that having directors with a deep connection back to the farmgate benefits everyone.

“Decisions made by these boards flow onto our individual farming businesses and communities. Directors will still make commercial decisions, but having an appreciation for how they will impact farmers is critical.” Fonterra Co-operative Councillor Kylie Leonard says.

“The nature of farming makes us effective governors. In our own businesses, we’re accountable for strategy and performance, managing scarce capital, and making sound judgment calls. Governance requires many of the same skills, just on a larger scale. We formed these co-operatives for our mutual benefit, so who better to step up and govern than the people with boots on the ground – the farmers and growers that own them,” says Kylie.

 

Fonterra Governance Development Programme

If you’re looking to take your governance knowledge to the next level and have your eye on making a difference in the rural community, Fonterra has an opportunity to help you get there through the Fonterra Governance Development Programme (GDP).

It’s a one-year programme, designed to develop governance acumen in individuals who are current or aspiring leaders and governors – specific to the New Zealand co-operative context.

The programme aims to provide a solid grounding in governance best practice, leadership, board processes, directors’ duties, finance, risk, strategy, and critical thinking.

Participants will hear from experienced governors, participate in board simulations and interact with members of Fonterra’s Board, Management and Co-operative Council.

All Fonterra shareholders and herd-owning sharemilkers supplying Fonterra can apply. A limited number of places may also be made available for members of LIC, Foodstuffs and Silver Fern Farms.

 

Key Dates

Applications open: 1 October 2025

Applications close: 31 October 2025

Programme begins: January 2026

 

How to apply

Follow the link below for more information.