Global Co: Top Five In Five Years Impossible

MEDIA RELEASE

11 June 2001

Global Co: Top Five In Five Years Impossible –
Larsen’s Claim Not Credible

“Rubbish!” said Mark Masters in response to Warren Larsen’s claim that Global Co will become one of the top five dairy food businesses in the world within five years. [Mr Larsen made this claim in a recent newsletter to farmers, and at a recent Hamilton meeting with farmers].

“What’s more, Mr Larsen’s claim that it can be done with farmer money only is simply ludicrous”.

“To lift Global Co’s turnover from $10 billion pa to $100 billion pa within five years defies credibility”, said Mr Masters.

In its report to the Government of May 2001, Promar International advised that to reach the top tier of world dairy food companies, Global Co would need to have $100 billion of sales, $66 billion of equity and around 180,000 employees.

On merging, Global Co would have about $9 billion of sales and about $3 billion equity.

On the world stage, Global Co will still be a relatively small.

“Farmers who are voting for Global Co in the belief that the strategy can be delivered without share capital from outside the industry are being badly mislead”.

If Global Co is serous about implementing the industry’s strategy, it will have little choice but to bring in outside share capital.

“Industry leaders can’t pretend otherwise”, concluded Mark Masters.

ENDS

Inquiries to:
Mark Masters (025) 541 729
Hilary Webber (025) 907 342
Malcolm Bailey (06) 323 8147

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