Global Co: Farmers’ Payout At Risk

MEDIA RELEASE

‘A Better Dairy Deal’

1 June 2001
GLOBAL CO:
FARMERS’ PAYOUT AT RISK

Global Co will be looking for $12 to $15 billion of new capital over the next five to 10 years – “that’s the figure from the McKinsey report”, said Mark Masters, on behalf of Farmers for a Better Dairy Deal.

“This is a huge amount of money. At the moment, our leaders tell us we’ve got about $3 to $4 billion of suppliers’ funds tied up in the NZ dairy industry.”

“They want to increase the capital base four to five times!” noted Mark Masters.

“So Global Co will be very hungry for cash – to pay for its big foreign investment plans”.

Global Co’s plan is to buy several very large foreign milk factories, in South America and Asia.

“Apart from borrowing, farmers are Global Co’s only other of source of capital.”

“ In other words, Global Co will retain big chunks of our milk payout to help fund their plans to buy big foreign milk factory”.

“I’m very worried that Global Co is simply too risky for ordinary farmers.”

“ We need to be able to decide for ourselves where to put our money”, said Mark Masters.

“Some farmers might want to invest in foreign milk factories. But others might want to receive higher milk payouts and re-invest that money on the farm.”

“Or some of us might want to put something aside for our retirement – in a super fund or such like”.

“The vital thing is that we should be able to choose – for ourselves”, emphasised Mark Masters.

“Under Global Co, we can’t. They will decide how much of our payout to retain – to fund their foreign milk factory plans.”

“That makes me feel very uncomfortable”, said Mr Masters.

Under the 1999 Mega Co-op plan, farmers would have had control – we would have been able to choose for ourselves whether to invest in foreign milk factories, and if so, how much of our money to invest.

“Global Co must be changed to give farmers control and choice over investing their milk payout money in risky foreign projects”, concluded Mark Masters.

ENDS

Inquiries to:
‘A BETTER DAIRY DEAL’
Tel: Mark Masters (06) 765 7544 Email: rmmasters@zfree.co.nz

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