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Dfnz Backs Merge Co, Reallocating NZDB Shares

The Dairy Farmers of New Zealand Council today voted to support the concept of Merge Co.

Announcing this, DFNZ Chairman Charlie Pedersen said that there was a woeful lack of information available to farmers about the detail of the Merge Co proposal, or about other structural options available to the industry.

"Farmers want unity within their industry and, on this basis, support the concept of Merge Co as a vehicle to achieve this," commented Mr Pedersen.

Mr Pedersen called on industry leaders to make available the McKinsey & Co report and the Merge Co Business Plan so that farmers could judge for themselves whether the detail of Merge Co warranted their support for its concept.

"Farmers are pragmatic and will support the best structural option that supports their key goals."

"Those goals include achieving a stable structure that delivers critical mass, ensures the retention of value in the industry, and addresses the marketing/manufacturing interface inefficiencies that are inherent in the current structure."

The emergency council meeting also voted to support the concept of having New Zealand Dairy Board shares reallocated to dairy farmers as a way of helping to achieve the key goals of farmers.

"The share issue would also help address the lack of communication that has dogged the structure debate. The industry cannot go forward until the issue of its structure is resolved."

"Critical mass via the single selling desk has enabled the New Zealand dairy industry to become a world class business. DFNZ believe dairy farmers still overwhelmingly uphold unity and mass as critical elements for our dairy industry's future," concluded Mr Pedersen.

ENDS

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