MPO ANNOUNCES THE CONCLUSION OF THE STRATEGIC RESTRUCTURAL PROCESS

MPO PRESS RELEASE

For immediate release

5 October 2021, Pretoria – The Board of Directors of the Milk Producers’ Organisation (MPO) today announced the conclusion of the operational process to recalibrate the organisation to its purposeful functions for the benefit of its members. The investigation into strategic and structural change was embarked upon in May this year and the restructuring process was concluded early October, reducing the organisations’ workforce by roughly 60%.

The MPO values the contributions made by all employees regardless of their age, but nevertheless recognises that some level of employee turnover is essential to introduce new skills and approaches or to refocus activities that impact on the success of the organisation. A retirement policy determining that the normal age of retirement for all employees shall be 65 years of age was instituted in July. The policy defined that retirement shall take effect at the end of the calendar month in which the employee reaches the age of 65 years.

“By streamlining our operations, we will create a leaner organisation with greater financial flexibility that is highly focused on core functions. Furthermore, we can offer a platform for buyer–seller negotiations with the provision of market information, as well as leverage our leadership in complement, and pursue disciplined business development to expand the market,” said Colin Wellbeloved, chairman of the Board of Directors of the MPO.

The MPO would like to involve members at all levels to optimise capabilities across the organisation and develop tailor-made services that can make a real difference on-farm, thereby creating transparency and strengthening corporate integrity to forge the future. Some of the current positions within the MPO have become redundant and as a result have been suspended. The personnel of the Institute of Dairy Technology, Member and Regulatory Services were impacted.

“Changes of this nature are difficult, and we recognise that they have a personal impact on people who have been dedicated to the mission of the MPO. We thank, in particular, Barbara Bieldt and Philip Swart for their contributions to the MPO’s achievements. While difficult, these changes were necessary to enable the organisation to deliver viable long-term performance to support our ability to continue to develop and deliver sustainable dairy farming for all,” said Fanie Ferreira, acting chief executive of the MPO.

Companies within the MPO Group, namely Agri Connect, The Dairy Mail, and Agri Inspec, were sold and have changed ownership, but will remain part and parcel of the MPO’s service offering on a contractual basis. The sharing of information and communication with members and role players and conveying the MPO’s message more effectively in its own voice, The Dairy Mail, and via a full spectrum of media platforms, remains imperative and monitoring forensic input continues to be a core function. The Agri Travel company was closed, and notice has been given to external clients, but travel services have been retained for internal use.

The recruitment of a new chief executive officer for the MPO involves finding the candidate with the best skills and experience to fit the position. The process is on track, resumes have been collected and reviewed, and a list of ten promising candidates has been gleaned. Signium Africa Executive Recruitment Company will be conducting first interviews and the MPO Board of Directors hope to finally select and welcome the new chief executive by the end of the year.

The MPO Board is encouraged by the positive support received during this difficult process and express their heartfelt thanks to the dairy farmers for their trust in the Board.

“We thank Derek Redfern of Redfern and Findley for his legal advice and support, and we bring thanks to our Heavenly Father for continual grace in these difficult circumstances,” says Ferreira.

The MPO Board looks forward to hosting MPO members at the annual general meeting on 14 October and all dairy industry participants at the annual virtual congress on 19 October.

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For more information, contact:

Fanie Ferreira | 083 453 9339 | fanief@mpo.co.za

Colin Wellbeloved | 082 498 7838 | melrosefarm@vodamail.co.za

ISSUED BY AGRI CONNECT