The CRT reaction followed a broadside by Silver Fern Farms which accused other rural companies of poaching two Southland-based livestock agents, something it linked to CRT's decision to add a livestock division to its existing rural servicing businesses.
CRT chief executive Brent Esler said in an interview he had not employed either agent, but said some current and former "disillusioned" SFF livestock agents had approached the company.
One of the two agents to resign, Paul Cochran, told the Otago Daily Times that he had left SFF for job security and personal reasons, and had taken a position with another meat company, Canterbury Meat Packers.
Mr Esler said SFF's angry reaction to its decision to create a livestock division was surprising given the meat company had tried to establish relationships with corporates such as PGG Wrightson.
Its reaction to CRT was disappointing, he said, given SFF had not explored any benefits of working together.
"The potential of a cohesive grouping of farmer-owned co-operatives has not been given due consideration as an alternative for achieving improved returns for farmers," he said.
CRT has bought two livestock companies in Nelson and North Canterbury employing four agents, following requests from shareholders, and has a stated goal of creating a network of livestock agents in the South Island and lower North Island.
Mr Esler rejected claims by SFF that it was not adding value, saying there was always a cost in procurement, but CRT would rebate profits to shareholders and it fitted with other company functions such as CRT Finance.
SFF chief executive Keith Cooper said CRT's move added costs and another layer between farmers and processors which was counter to its plans of linking consumers with farmers to produce what the market wanted.
"As an industry, our overall success can only be achieved by working collaboratively on a partnership basis, and we are committed to having those farmer-partner relationships managed with our own team of field staff."
Mr Cooper said he was not over-reacting to CRT, but highlighting to suppliers that having another livestock company in the industry was destructive, added costs and had ramifications.
"All we are doing is bringing to the attention of our suppliers that they need to be careful and consider who they align themselves with in terms of stock agents, because we don't believe CRT has a role to play."
There has been an increase in the number of new, independent livestock agents since Reid Farmers merged with Pyne Gould Guinness and then that entity merged with Wrightsons to create PGG Wrightson.
Traditionally, farmers use livestock agents to market their stock, with prime animals sold to the meat company offering the highest price.
In recent years, meat companies have developed relationships with farmers through their own network of agents, to have greater control over the flow and quality of animals, something SFF, which has 33 South Island livestock agents, wanted to develop even further.
