Strong strategic governance is required for Silver Fern Farms and shareholders have a responsibility to elect the best qualified candidates, chairman Rob Hewett says.
Mr Hewett was responding to comments made by Meat Industry Excellence chairman John McCarthy who has called for improved governance of the country's meat industry co-operatives.
Mr Hewett is seeking re-election to the board, along with fellow incumbent director Herstall Ulrich. Fiona Hancox is also standing. Two positions are available.
Mr McCarthy said Mr Hewett had ''effectively endorsed'' Mr Ulrich by calling for no change on the board, which he believed was ''entirely inappropriate''.
''It's the principle at stake. It is up to farmers to decide whom they elect as governors of their co-op,'' he said.
In response, Mr Hewett said the company had a ''big agenda'' this year and that required the governors of the business to competently execute governance decisions around agreed strategy with clarity in a fast-changing and dynamic international marketplace.
That came from relevant governance experience.
''My comment around `no change' was, in fact, around the need for the strategy that Silver Fern Farms has enacted not to be derailed this year and that strong strategic leadership is required, leadership that is familiar with our agreed strategy,'' he said.
Shareholders must satisfy themselves that the candidates they selected had proven ability to govern a company of Silver Fern Farms' size and complexity, have demonstrated performance and possess the ability to deliver the strategy.
An external independent assessment of all candidates was attached to the voting papers and should be used as a guide to help select those appropriately qualified, he said.
Mr McCarthy also said farmers were further frustrated at the ''poor levels of transparency and accountability'' exhibited by their co-operatives.
''The promises are turning to dust, like our pastures. The $100 plus a lamb of last year was an aberration and we're back to worse than a year ago.
''Schedules are falling again and the co-ops are leading the way. They are stretching farmer loyalty to the limit,'' he said.
On top of climatic challenges, it was putting farmers under real stress, Mr McCarthy said.
Mr Hewett said it was easy to pass comment on farmgate price cuts and cost of production not being adequately covered by market returns, but unless there was a clear strategy of sustained value creation to capture increased consumer spend, ''we are doomed to repeat the commodity cycle reactions of the past''.
Voting papers were posted to eligible shareholders this week, with voting closing on February 13.
