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


PPCS support for combined model heartening

Media Release from MIAG

For immediate use

9 April 2008

MIAG is heartened to hear that PPCS “support the concept of a combined industry model.” The Dunedin-based company informed shareholders of this stance by letter earlier this week. (Editors note: Letter dated April 7).

MIAG Vice-Chairman John Gregan said the letter supported comments in an earlier company newsletter dated 27th September 07.

“The PPCS board concluded that the case for a merger concept was compelling and would be in the interests of the long term sustainability of the sheepmeat industry.

And that: “in PPCS' view we should not delay in implementing an immediate and long term vision for the meat sector which would capture significant benefit for farmers and that the longer we defer change, the longer we defer the opportunity for industry improvement.”

PPCS also state that the benefits of a combined entity cannot be achieved outside a merger and that there are limited opportunities to pursue joint marketing initiatives outside of a merger. They also say that attempting to market under a single entity offshore and competing aggressively in the procurement of livestock within New Zealand are diametrically opposed positions.

And: “While we acknowledge there are some challenges in a merger concept, PPCS believed a positive outcome could have been achieved as any merger would have been by agreement, independent valuations would have taken into account the companies respective positions and ensured all shareholders received fair value.”

Therefore, MIAG is astonished at PPCS’ lack of urgency and reluctance to “commit significant funds or time” as farmers hurt from their third consecutive year of unsustainable returns.

“The time for tinkering with a failed model and sitting on the fence is long past. Combined with the known factors impacting on current farmer profitability we see the long-term benefits of industry reform clearly outweighing any short term risks, Mr Gregan said.

“We believe PPCS shareholders will demand that they comment in full to jointly developing a new industry model NOW.

“In conclusion why wait when PPCS have clearly identified so many positives for a merger. What's has changed.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>


Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>