Mr Hurrell has been the chief operating officer of the co-operative's Farm Source, a role involving responsibility for Fonterra's global co-operative farming strategy, which includes farmer services and engagement, milk sourcing and the chain of 70 Farm Source rural retail stores.
In March, Fonterra announced incumbent chief executive Theo Spierings had resigned and would step down this year, after eight years in the role. A global search for a new chief executive began late last year.
Mr Hurrell, who has taken over effective immediately, first joined Fonterra in 2000 and his experience in the dairy industry has included roles in Europe, the United States, Middle East, Africa and Russia.
Last month, Fonterra chairman John Wilson stood down from his position because of a serious health scare and was replaced by John Monaghan.
In a statement yesterday, Mr Monaghan said the board was clear that it was not best practice to have the chairman and chief executive stand down at the same time, but events had overtaken that decision.
He agreed with the board that the global chief executive search should be stopped while the co-operative's current portfolio and direction were reviewed.
''It's important that we give ourselves the time to take stock of where we are as a co-operative, breathe some fresh air into the business, then determine any changes that are needed.
''Appointing a new CEO is the most critical decision a board will make. We will take all the time we need to find the right person,'' he said.
In the meantime, a new leader who could ''hit the ground running'' was needed and Mr Hurrell had a deep understanding of Fonterra's business and had demonstrated his ability to manage large, complex business units in most of its global markets.
The board and Mr Spierings had agreed it was the right time for him to step down. He would work alongside Mr Hurrell through until September 1.
Last week, Fonterra trimmed last season's forecast farm-gate milk price by 5c to $6.70, and said it was unlikely to pay a final dividend this year.
Farmers' revenues for the 2017-18 season would be about 10c-15c lower per kilogram than they might have been previously.
Fonterra Shareholders Council chairman Duncan Coull described the situation as unacceptable.
