Proposal Up For Debate

The chairman of Federated Farmers Meat & Fibre Section, Bruce Wills says farmers will need to consider whether they wish pursue full farmer ownership of meat processing or make room for significant corporate involvement.

Mr Wills comments come at the announcement of a Heads of Agreement proposal between PGG Wrightson and Silver Fern Farms (formerly PPCS) today.

“This may be the catalyst the industry needs to move forward. For some time now meat and fibre farmers have been demanding change. This proposal gives some hope and an alternative to the impasse that has occurred around recent restructuring initiatives in the meat processing industry, Mr Wills said.

“Going from a fully farmer-owned co-operative to a 50/50 partnership with a very strong industry player will provide a much needed capital injection for Silver Fern Farms.

“Because the venture is commercially driven it will happen over a much shorter time-frame than other alternatives. Action sooner rather than later is positive for everyone involved.

“For this proposal to proceed it needs a 75 percent acceptance by the co-operative’s shareholders. The key issue will be whether farmers want to retain total control of their industry or are happy to work in a partnership arrangement.

“I will continue to work closely with all participants in the hope that the final decision will provide a better outcome for the entire meat industry than what we currently have,” said Mr Wills.