Keep ownership of the meat industry: MIAG

11 February 2008

Keep ownership of the meat industry: MIAG

Hold on to your ownership of the meat industry with both hands, that’s the message to farmers from MIAG Chairman Keith Milne.

Low prices for lamb and subsequent lack of profitability has forced many farmers out of the industry in recent times and as a consequence both PPCS and Alliance appear to be looking at their options, too.

“We are aware of at least three proposals currently being worked on by individual companies/groups so far without industry-wide co-ordination or common goals.”

Of these, Mr Milne said the biggest concern was PGGWrightson’s possible move to invest in PPCS, which has been rumoured to include toll processing and PGGWrightson marketing under their own brand.

“Such a move could cost farmers dearly. Never sell at the bottom and lose control of your co-operative.”

Mr Milne urges PPCS shareholders to urgently contact their directors and vigorously voice their concerns.

“They need to demand that shareholders be consulted with, and in a timely manner, before any decisions are made.”

“What’s the rush, we ask that PPCS, and all industry players wait so all initiatives can be presented and considered by the Meat and Wool NZ Taskforce.
Meanwhile, South Canterbury farmer and businessman Forbes Elworthy has written a plan, set up a merger vehicle company and will be presenting his vision for the future of the meat industry to farmers from Site No. 8 at the Southern Field Days on Wednesday.

He will be inviting farmers to join his company and share in his co-operative vision.

And, on the subject of moving the industry forward and improved profitability, Alliance Group Ltd Chairman Owen Poole has said: “…some conceptual solutions have been identified.

“We will be sharing these concepts with shareholders to test their appetite for change prior to engaging in a wider industry debate.”

Mr Poole has sent a letter to shareholders, which they should receive on Wednesday.

ENDS

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