Grains Growers Gain From Negotiations

31 July 2000

PR84/2000

GRAINS GROWERS GAIN FROM GOODMAN FIELDER NEGOTIATIONS

Grains Council Chairman Neil Barton said today that he is satisfied with the deal negotiated for Manawatu and Southland wheatgrowers following the Goodman Fielder restructuring. "It provides the best outcome available under the circumstances," he said.

Following the Goodman Fielder restructuring announcement, growers were concerned that the closure of the Palmerston North and Gore mills would penalise them as these areas could be faced with greater transport costs to mills. In the Gore area, oat farmers would have to grow other crops as the oat mill was closed.

A series of meetings between the Federated Farmers Grains Council, United Wheatgrowers Ltd, and Goodman Fielder management have resulted in a package of measures that will benefit growers.

North Island wheat growers have been offered contracts on a 'delivered to Palmerston North' basis. The prices offered per tonne delivered (100 index point) wheat are: Monad $316, Kotuku $310 and Karamu $245.

For most growers, these prices represent a lift of approximately $10/tonne.

Southland growers were hit with the closure of the Gore oat mill, and they no longer had the option of growing oat crops, as the Goodman Fielder oat supply is to be produced in Australia.

Goodman Fielder has since offered these growers contracts (100 index points) for Monad at $274, and Commando at $260 per tonne delivered to Dunedin.

These prices represent an approximate increase of $5 per tonne, as well as the advantage of delivery to Dunedin, rather than Christchurch. Agronomic advice will be available to farmers through FAR, Wrightson and Goodman Fielder, as well.

"These outcomes represent the value of an industry working together to achieve the best outcomes for all parties. Growers and millers have been able to work through the changes that are part of a dynamic industry, to the benefit of everyone," concluded Mr Barton.

ENDS For further information: Neil Barton 021-441-125 Kevin Geddes 03-307-8148

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