Leadership by farmers the issue, says community leader

Robert Hamlin
Robert Hamlin
It was not a question of sorting out the meat industry but a question of farmers sorting themselves out, particularly in regards to leadership, community leader Lindsay Malcolm believes.

Mr Malcolm suggested Alliance Group director Doug Brown, Silver Fern Farms director Bruce McNab, Meat Industry Action Group chairman John Gregan and Meat and Wool New Zealand chairman Mike Petersen, who were all at a North Otago Federated Farmers meeting yesterday, should be shoved into a room and to told to "sort themselves out".

Mr Malcolm was concerned about a lack of leadership in the farming community with no direction and, worst of all, he said, no wisdom.

In response, Mr McNab said Silver Fern Farms had gone to its shareholders to give some leadership and vision and it was up to shareholders to decide whether it was "ticked off" or not.

He said he was frustrated with "sideline commentary" about leadership.

PGG Wrightson has proposed buying a 50% share in Silver Fern Farms.

That would have to be approved by 75% of Silver Fern Farms shareholders.

The proposal had gone to shareholders for evaluation, and Silver Fern Farms was in the middle of very intense information-sharing with shareholders.

The company had a big job ahead of it over the next two months to get the 75% approval, Mr McNab said.

Mr Gregan said the proposal, as it sat, did not consolidate the meat processing industry.

If, at a minimum, Alliance Group was to become involved and PGG Wrightson was prepared to shrink down its share to between 25% and 20%, then it might be the conduit for the formation of a farmer-controlled market-led national champion.

Meat Industry Action Group believed the best concept was Alliance's proposal for a merger to create an entity representing 80% of New Zealand meat procurement, processing and exporting.

While that was no longer an option, Mr Gregan said it was the best model.

Mr Gregan believed it would be very difficult to get the support of 75% of Silver Fern shareholders for the PGG Wrightson-Silver Fern Farms proposal.

 

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