Australia’s former managing director Judith Swales has been moved to chief operating officer of velocity and innovation.

Ms Swales’ new title has been the subject of ridicule, with the Financial Review describing the position as another example of Fonterra “gobbledegook”. 

United Dairyfarmers of Victoria president Adam Jenkins defended the promotion of Ms Swales.

“She’s a good operator,” he said. 

“Now that she has taken on a global and strategic position it will be good for suppliers and the whole business.”

Mr Jenkins said despite a positive step for Ms Swales, the move added further change to an unsettled industry.

“Major change, all the time is unsettling for suppliers,” he said. 

“Farmers just want to get on with their businesses but with the events of last season, trust has been betrayed.

“With new management, it will take even more time to set that trust again and move forward.”

Mr Jenkins said while constant change was disappointing, the UDV continued to hope Fonterra and Murray Goulburn would put concrete systems in place to build trust and transparency for suppliers. 

“Actions are louder than words,” he said. 

“So time will tell.”

The appointment of René Dedoncker to the role of managing director was announced on Monday, June 20. 

Ms Swales said the appointment of Mr Dedoncker is the right choice for the Australian business due to his experience and leadership in business. 

“René will continue to deliver on the strategic plan that will see the business return to profit,” she said. 

Mr Dedoncker commences his role immediately and will be based in Melbourne.

The latest change in management follows the resignation of Murray Goulburn director Duncan Morris, who stepped down from his position two-weeks after the company announced significant financial loss in May.

The resulting clawbacks to suppliers remains an industry hot-topic.