The purpose of this report is to look at whether the amount of money spent by Fonterra on research and development is enough. Currently Fonterra spend around 1% of turn over on research and development. The body of the report looks at where this money is spent and whether more would be advantageous. Shareholders councillors were surveyed to see if they were satisfied with the current amount spent or whether they would like to see more or less spent. Some of the Fonterra executives were also asked whether they thought enough was being spent on research and development. Comparisons between like companies research and development percentages of spend were looked in to, to see if Fonterra is being left behind. The outcome from this is that the spend is adequate at present but in the future it seems like it will need to be increased to ensure that the company stays at the forefront of dairy innovation.
1% Is it enough?
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