Westland looks offshore

By Chris Hutching

Thursday 28th March 2002

Barry Richardson

Westland Milk Products' new chief executive, Barry Richardson, is eyeing up potential overseas clients while cultivating a commercial relationship with the company's biggest customer and rival, Fonterra Co-operative Group.

Last year the West Coast's independent-minded dairyfarmers rejected Fonterra's overtures to join in the dairy mega merger. The 282 West Coast suppliers of Westland milk enjoyed a payout last year that was higher than Fonterra's and they wanted to retain their processing plant at Hokitika, producing butter, casein and milk powder.

The big challenge for Dr Richardson (55) is to develop a marketing strategy that will differentiate Westland Milk Products's ingredients products, develop more niche products, and build relationships with new customers.

The Westland board selected Dr Richardson partly on the strength of what he has achieved after 11 years working at smaller niche company Tatua of Morrinsville, developing a marketing strategy for that company's specialised protein and health products.

"The business I've been involved in at Tatua has been very customer focused and I believe Westland needs to be out in the international marketplace working with customers and focusing on future business strategies in the same way although not necessarily with the same products."

A more immediate issue for Dr Richardson is to manage the company through a mediated dispute with Fonterra over $85 million worth of shares.

The $85 million is the value of Westland Milk Products' 2.8% stake in the former Dairy Board.

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