Fonterra - New Zealand's largest co-operative company - has announced the permanent appointment of Mile Hurrell as chief executive.
Mr Hurrell was made interim CEO after Theo Spierings stepped down last year.
Fonterra chairman John Monaghan said the board has been impressed by Mr Hurrell's leadership during his interim tenure.
"Miles has been performing well under difficult circumstances," Mr Monaghan said.
"Our performance is not something that will be fixed overnight ... it will require the courage to make difficult decisions, be up-front with farmer-owners, unit holders and other stakeholders, and instill a culture of accountability and performance right across the organisation."
Mr Hurrell said he was grateful for the support he had received and that he was looking forward to the challenge.
"My six months as interim CEO have reinforced my view that, despite the challenges with our current performance, the fundamentals of this business are strong," Mr Hurrell said.
"To realise our potential we need to get the basics right and that means a full review of our strategy and ultimately, a fundamental change in direction."
Mr Hurrell first joined Fonterra in 2000 and he has held roles in Europe, the United States, the Middle East, Africa and Russia.
His base salary will be $1.95 million, with additional short and long-term incentive payments based on meeting targets.
Mr Spierings had a base salary of $2.46m before he left.
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