A Fonterra director, and former trustee at the Sydney Opera House, has taken on one of the most difficult jobs in Australian agriculture – attempting to revive troubled icon Elders.

John Ballard flagged the 170-year-old group's "clear challenges" as he accepted the post of chairman, to add to non-executive positions at Fonterra, the New Zealand dairy giant, and International Ferro Metals.

The appointment comes a month after Elders, once Australia's biggest company, stunned markets by ripping up guidance of a Aus$55.7m underlying profit for the year to the end of September and replacing it with a warning of losses of Aus$8m-14m.

The caution sent Elders shares down 44% in one day to a then record low of Aus$0.46, on highest-ever trading volumes.

The stock subsequently slumped below Aus$0.32, taking its losses within a year above 90%.

'Only bad news' 

Mr Ballard said he was "firmly of the view" that Elders - which has refocused on farm services after a history extending from jam-making to brewing - would continue to play "an important and successful role" in an Australian agricultural sector which "had strong long-term fundamentals".

Outgoing chairman Stephen Gerlach said that Mr Ballard, also a former director at sugar-to-aluminium conglomerate CSR, bought "strong experience and highly relevant skills" to the group.

One of Mr Ballard's initial decisions is viewed to be the future of the current managers, led by chief executive Michael Jackman, who have come under doubt because of the steep reversal in Elders' fortunes.

Last month's profit warning followed a capital raising exercise in September, when investors had been promised a vast improvement in the company's performance.

"I know we are getting a reputation as being a company that only has bad news but unfortunately we are where we are,'' Mr Jackman said, announcing the caution.

Elders shares closed 3.1% lower at Aus$47 in Sydney.