Farming leaders have acted with surprise to news PPCS chairman Reese Hart has been voted off the board of the Dunedin meat co-operative.
Meat Industry Action Group co-chairman John Gregan said the election result appeared to be a backlash against low lamb prices, despite Mr Hart actively seeking structural changes to the industry.
‘‘Reese Hart has listened to shareholders and moved with the times, but I guess farmers wanted to see some changes,'' Mr Gregan said.
Meat and Wool New Zealand chairman Mike Petersen was also surprised, but said meat companies were being sent a blunt message by shareholders.
‘‘It is another graphic message to companies that farmers aren't happy,'' Mr Petersen said.
Mr Hart said farmers had reacted to low prices. ‘‘Farmers are very disappointed, and I am too. They are hurting and I understand their frustration,'' Mr Hart said.
He believed he had become preoccupied with driving change in the industry rather than campaigning for re-election.
Mr Hart's departure should not hinder changes under way in the industry, especially plans by the Alliance Group to initiate a meat mega company to procure, process and market 80% of New Zealand's meat kill.
‘‘It should have no bearing. I personally favour the Alliance Group's concept and the [Meat and Wool New Zealand's meat industry] task force is a good idea.''
He said the independence of the task force would be an asset to the Alliance concept should shareholders approve management pursuing the plan, and Mr Hart felt it could help drive the proposal, especially dealing with the Government.
Mr Gregan said another reason for Mr Hart's unseating, was the company's decision to continue to deal with third party stock suppliers, when PPCS had decided to stop.
He said it was an example of how Mr Hart had tried to drive change, but ultimately the lack of profitability in the industry cost him his position.
‘‘To Reese's credit, he has tried to change things in the past year. But farmers are fed up. They can't carry on losing money,'' Mr Gregan said.
Mr Hart's place on the board has been taken by South Canterbury farmer and former Meat Industry Action Group (MIAG) member Herstall Ulrich.
Mr Gregan said Mr Ulrich was an advocate of industry change.
MIAG co-chairman Keith Milne said the two election results were an example of farmers taking ownership of their industry and seeking changes to the status quo.
‘‘If there has been any doubt in anybody's mind that farmers are ready to take back the industry and make substantial changes, that has been extinguished today,'' Mr Milne said.
In other election results, North Island farmer Alistair Polson, a board member for six months, was unseated by Ian Grogan, while Lawrence farmer Rob Hewett replaces the retiring Robbie Burnside.
A new chairman will be elected after the company's annual meeting in Dunedin tomorrow.