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


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>