Farmers getting in behind their co-operatives

Farmers are tiring of the constant sniping between the two southern meat co-operatives, but they also appear to be entrenching themselves in support of their respective companies.

Resolve seems to be hardening and, while many can see merit in Alliance Group (AGL) and Silver Fern Farms (SFF) merging, they appear supportive of the position of their respective boards.

An unofficial survey of southern farmers revealed those who supply SFF will respond to the company's open letter to shareholders of both co-operatives seeking their view on a merger, but AGL shareholders will not.

The open letter poll ends on Monday.

But there is almost open hostility among some towards the behaviour and philosophy of the competing co-operative that would create a huge obstacle should the two ever merge.

AGL supplier Graham Senior, of Mossburn, highlighted the hardening in attitude, saying while the two should merge, SFF's financial position and philosophy would prevent that occurring.

He was angry at a joint venture, involving SFF, PGG Wrightson and Landcorp, securing Government primary growth partnership funding to research a plate-to-pasture integrated supply chain, saying AGL had already done that.

Equally, SFF suppliers were supporting their company, saying the company was being innovative, showing leadership and deserved acknowledgement for its financial turnaround.

Lee Stream farmer Peter Doherty would vote in favour of a merger, saying for the wider good of the industry, more co-operation was needed.

"SFF has got debt out of its system, so things have evened out. The way sheep numbers are dropping [means] there is not enough room for this type of competition."

Mr Doherty reflected the frustration of many when he questioned the efficiency of trucks carrying stock for one company trundling past a works belonging to the other.

Ida Valley farmer Gerard Flannery also voted in support of a merger, saying both companies had strengths and it made sense to use those by working together.

"The time for talking has gone; it is now time for action."

Waitahuna farmer Gary McCorkindale, an AGL supplier and shareholder, said SFF appeared desperate to get a partner, and he felt the questions in the open letter were too complex to enable a yes-no answer to be given.

Garth Shaw, from Clydevale, was still bitter AGL's Concept plan for industry consolidation never got off the ground, and the AGL supplier and shareholder said farmers could drive change by supplying all their stock through a co-operative.

Clydevale SFF shareholder Ray Sutherland said the two co-operatives had to merge to remove duplication, but doubted that would happen under the leadership of the current chairmen.

Peter McNab, from Owaka, said it appeared personal egos at board level were preventing what was in the best interests of shareholders.

Awatere Station owner and AGL supplier James Anderson agreed with the position of AGL chairman Owen Poole, who says a merger would lump the new company with the cost of closing SFF plants.

He also agreed with Mr Poole a new entity needed to be bigger than just SFF and AGL.

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