Fonterra CEO Andrew Ferrier is stepping down from his role in the second half of 2011.

The announcement comes after the world's biggest dairy exporter last week lifted its forecast payout to farmers by 60 cents, beating expectations and bringing the total payment to as much as $8 a kilogram of milk solids.

Fonterra is New Zealand's leading company, earning revenue of almost $17 billion.

Andrew says with Fonterra in good shape it provided the right opportunity for the transition.

'I have always thought that a successful CEO should build a culture and capability in an organisation to ensure that it continues to improve when you move on,” says Andrew.
'Fonterra is a great cooperative and, when I leave, I will have absolute confidence in it becoming even stronger in the future.

'I have had 17 years as a CEO, including eight years at Fonterra, and I am looking forward to more flexibility in my life, spending more time with my family, and choosing from a number of business interests that are available to me.”

Fonterra chairman, Sir Henry van der Heyden, says Andrew has devoted eight years to building Fonterra into a highly successful cooperative, delivering great results for its farmer shareholders and New Zealand.
'Andrew has always placed great emphasis on finding the right people, building a strong team, and on succession planning.”

Sir Henry said that the board would be considering internal and external candidates.

The assessment and development of internal candidates had commenced nearly two years ago and an international search was put in place at the end of last year.