Meat industry merger talks on

A meat industry ginger group has succeeded in forcing the two southern processing and marketing co-operatives to call special general meetings and discuss a merger.

The Meat Industry Action Group announced yesterday it had the necessary shareholder numbers to force the Alliance Group and Silver Fern Farms to call the meetings at which a resolution calling for an independently-chaired joint working party to look at consolidation would be considered.

Group spokesman John Gregan said the proposed PGG-Wrightson purchase of 50% of Silver Fern Farms would have no impact on his group's ultimate plan of creating an entity to handle 80% of New Zealand's red meat procurement and processing.

The meetings were unlikely to be called until after September's vote by Silver Fern Farms' shareholders on the proposal to merge with PGG-Wrightson.

Alliance Group chairman Owen Poole said he had meetings planned with shareholders next month to discuss his company's strategic plan and would not consider holding a special meeting until after those talks.

SFF chief executive Keith Cooper said the board would meet next week and consider the action group's proposition.

Mr Gregan did not have any problem with delaying the special meetings, saying having them after the PGG-Wrightson-Silver Fern Farms vote would make the situation clearer.

A "no" vote by shareholders would add to the pressure to get the two co-operatives talking.

A "yes" vote meant the industry still needed consolidation, he said.

The detail of the resolutions was still being worked on with the meat companies.

Mr Gregan said another remit would try to ensure the committee reached a decision.

"It is all very well telling them to get around the table, but we need some teeth . . . we need to give the chairman some ability to make them toe the line."