Sharemilker Shareholding - Another Step

Sharemilker Shareholding - Another Step To The Future

National Sharemilkers' Section Chairperson Conall Buchanan today urged New Zealand Dairy Group suppliers to endorse sharemilker shareholding at a mid-December suppliers' meeting.

NZDG suppliers will vote on a raft of separate issues, including sharemilker shareholding, on 15 December. Mr Buchanan reminded shareholders that although suppliers are being asked to vote on sharemilker shareholding at the same time as Peak Milk Rights, it was important to remember that they are two very separate issues.

"Sharemilker shareholding is a win-win situation for both the sharemilker and the farm owner," emphasised Mr Buchanan

"At some point in the future, deregulation will occur so it is important to look after our young farmers, including sharemilkers. Although sharemilker shareholding does not have huge commercial significance at a company level, it does give sharemilkers a say."

"Under the system that NZDG is promoting, sharemilker shareholding would not be compulsory and it would only occur if the farm owner saw a benefit. Sharemilkers would have the opportunity to purchase shares from their farm owners."

"To me, the important thing to remember is that if a farm owner and a sharemilker do not want to get involved with sharemilker shareholding, they don't have to, and their business will not change."

"However, we believe that for those sharemilkers and farm owners who do want to explore the possibilities, they should be able to. All we are asking is for the opportunity to grow our business in innovative ways."

"Once the owner and the sharemilker have decided to embrace sharemilkers owning shares, it opens all sorts of opportunities to them," he said.

"For example, the farm owner could realise some of their capital tied up in the industry. Both parties, the farm owner and the sharemilker, could share the cost of increased production. The sharemilker would have an alternative means of investing in the industry - apart from buying more cows. It would allow innovation, which is increasingly becoming a hallmark of people making real progress in the industry."

"I'm confident that NZDG suppliers will share this view and vote for sharemilker shareholding on 15 December," concluded Mr Buchanan.

ENDS For further information: Conall Buchanan 07 867 7880 or 025-333-674

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