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


Vote For Positive Change

Vote For Positive Change

Farmer-owned co-operative Dairy Meats requires radical change to its current methods of operation, and AFFCO's purchase of it would give an opportunity for that positive change, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

Meat processor AFFCO Holdings has offered to buy Dairy Meats, New Zealand's largest processor and marketer of bobby calves. The deal is conditional on the approval of 75 percent of shareholders in the wholly-owned New Zealand dairy farmer co-operative.

Mr Wooding said that Dairy Meats lack of success is not a reflection of any failings in the co-operative model used successfully by other farming sector businesses.

"Many farmers have not supported Dairy Meats because it did not meet the service levels required by dairy farmers running efficient businesses. The purchasing, pick-up and processing of bobby calves is a competitive market -- as it should be -- and Dairy Meats could not match or better its competition.

"Dairy Meats shortcomings have resulted in it losing market share as more farmers have switched to rival processors which were more flexible in their service and offered more timely pick ups of stock.

"Farmers have lost a 16-year-old business which could have been extremely good and that is very disappointing. But this is an appropriate time to make changes to Dairy Meats before it is too late," Mr Wooding said.

"Shareholders will make up their own mind how to vote. But the AFFCO offer appears to be a fair proposal, so I encourage dairy farmers who still have Dairy Meats shares to vote for positive change at the special meeting," Mr Wooding said. The special meeting will be held in Te Awamutu on December 13.

Mr Wooding said that Dairy Meats' demise sent a wake-up call to farmers to become more involved in their co-operatives.

DFNZ is the dairy industry group of Federated Farmers of New Zealand (Inc).

© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. 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>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. 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>>