Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Roadley Rejects Splitting Industry

John Roadley, Chairman of Global Dairy Company, has today rejected the suggestion by a fringe group that the dairy industry be split in two and opened up to outside investors.

“For half a decade or more, the dairy industry has been researching and debating the best possible structure for the future,” he said. “Over the years, we have studied dozens of options. All key dairy industry leaders have now agreed the merger is the best way to build on our success of the last 50 years and rejected the two-company model long ago.

“The proposal that has been put to farmers has been agreed unanimously by the boards of Dairy Group, Kiwi and Global Dairy Company. It maintains the unity of our industry so that we have the scale we need to compete successfully on world markets. It keeps the industry in the ownership of New Zealand dairy farmers so that the benefits of our international marketing effort are returned to the New Zealand farmgate. And it integrates our manufacturing and marketing arms so that we can better coordinate our activity.

“This new fringe group recommends at the last minute that we should split the industry in two and open it up to outside investors. That would destroy our unity and our scale and put the returns from our efforts in the hands of outside investors. It is unfortunate that a couple of former farming leaders have allowed themselves to be manipulated by theorists and former bureaucrats in Wellington. Their proposal is simply not credible.”

Mr Roadley said leading international consultants McKinsey’s had said a two-company model was “unlikely to be stable and would not deliver the same value as a single company”.

He said the merger was New Zealand’s last chance to maintain the unity and scale of the dairy industry under the ownership of New Zealand dairy farmers. If the proposal failed, there would not be another one.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news