Pressure is mounting on the Alliance board to not ignore merger overtures from Silver Fern Farms, even though some farmers are questioning the Dunedin co-operative's tactics.
Farming leaders spoken to support Silver Fern Farms' (SFF) proposal of appointing an independent facilitator to chair a joint evaluation committee which would, among other tasks, oversee an independent analysis of the financial outcomes from a merger of the two southern meat co-operatives.
Federated Farmers Otago meat and fibre section chairman and former SFF director, Rob Lawson, supported the intent of SFF's open letter to shareholders of the two companies published in weekend newspapers, but described the method of communication as "un-orthodox".
Alliance Group chairman Owen Poole has rebuffed SFF's offer, saying it has not stacked up previously and was unlikely to do so now.
Mr Lawson said an independent analysis would validate whether or not there were synergies.
"If Alliance is so sure there is no value in a merger, they shouldn't be overly concerned by an independent analysis," he said.
The federation's field staff and his own dealings with farmers reveal that many want the two co-operatives to merge.
Mr Lawson dismissed Mr Poole's statement that Alliance shareholders had two years ago overwhelmingly rejected a merger, saying that vote was initiated by the Meat Industry Action Group, MIAG, and was too prescriptive.
This proposal was quite different, he said.
A former MIAG leader, Keith Milne, saw similarities between the SFF proposal and his group's push for an independent chairman to lead discussions between the two co-operatives but he doubted Alliance shareholders would support the initiative if their board rejected it.
"We learnt that if you can't take the board along and, as it turned out, management also has a fair bit of influence, then you are unlikely to get support."
Mr Milne said the South Island would benefit from the merger, with the co-operative taking a leadership position and smaller companies following, similar to the role Fonterra plays in the dairy industry.
He said the balance of power had shifted in the last two years.
There was now some concern among loyal Alliance shareholders about its exposure to the southern sheep industry, where stock numbers were falling.
Two MIAG supporters elected to the Alliance board, Mark Crawford and Jason Miller, face re-election this year.
Mr Crawford said the board was united in its view a merger with SFF in itself was not enough and that wider industry consolidation was needed.
He did not see any inconsistency in this stance and his previous membership of MIAG, saying they resigned from the ginger group and stood on ticket of seeking co-operation in the market place.
