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


Roadley Rejects Splitting Industry

John Roadley, Chairman of Global Dairy Company, has today rejected the suggestion by a fringe group that the dairy industry be split in two and opened up to outside investors.

“For half a decade or more, the dairy industry has been researching and debating the best possible structure for the future,” he said. “Over the years, we have studied dozens of options. All key dairy industry leaders have now agreed the merger is the best way to build on our success of the last 50 years and rejected the two-company model long ago.

“The proposal that has been put to farmers has been agreed unanimously by the boards of Dairy Group, Kiwi and Global Dairy Company. It maintains the unity of our industry so that we have the scale we need to compete successfully on world markets. It keeps the industry in the ownership of New Zealand dairy farmers so that the benefits of our international marketing effort are returned to the New Zealand farmgate. And it integrates our manufacturing and marketing arms so that we can better coordinate our activity.

“This new fringe group recommends at the last minute that we should split the industry in two and open it up to outside investors. That would destroy our unity and our scale and put the returns from our efforts in the hands of outside investors. It is unfortunate that a couple of former farming leaders have allowed themselves to be manipulated by theorists and former bureaucrats in Wellington. Their proposal is simply not credible.”

Mr Roadley said leading international consultants McKinsey’s had said a two-company model was “unlikely to be stable and would not deliver the same value as a single company”.

He said the merger was New Zealand’s last chance to maintain the unity and scale of the dairy industry under the ownership of New Zealand dairy farmers. If the proposal failed, there would not be another one.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>


Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>


Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>


Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>