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

 

Global Co: Vote

MEDIA RELEASE

Farmers for a Better Dairy Deal

18 June 2001
Global Co: Vote

“It is pleasing to see such a strong turnout and a decisive vote by farmers on such a key issue, said Mark Masters on behalf of Farmers for a Better Dairy Deal, responding to the provisional results announced today by Kiwi and NZ Dairy Group.

“We have done our best to ensure that farmers had all the relevant information in front of them before voting, including some discussion of the alternatives. We believe Global Co, in its present form, won’t achieve the strategy or the vision agreed by industry leaders in 1999.”

“It lacks so many key features required to deliver that strategy”.

“If Global Co is serious about becoming one of the top five dairy food firms in the world within five years, it will have to change significantly over the coming years”, said Mr Masters.

“It will have to access outside (non-farmer) share capital. It will have to become highly consumer-focused, not production driven as we have been for the last 60 years. It will have to radically re-shape its culture.”

“We believe industry leaders know are aware of these realities.”

“It will be interesting to see how well the Government can deliver its monopoly-safeguard regulations”, observed Mr Masters.

The chances of implementing regulations to effectively counter Global Co’s domestic monopoly are not high.

“The Government will be on the back-foot now that the industry leaders have the farmers’ vote behind them.”

The Government does not have a goo track record in dealing with monopolies in NZ. (Look at how long Telecom managed to keep Clear in a corner).

“Farmers will need to be extremely vigilant in monitoring Global Co’s performance. The sad reality, however, is that 14,500 dairy farmers can’t do it – the information and balance of power is so lop-sided.”

“We now have to make the best of poor decision”.


ENDS
Inquiries to:
Mark Masters (06) 765 7544 Hilary Webber (07) 827 1739

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: NZME 'In Discussions' To Buy Stuff

NZME confirms that it is in discussions with Stuff’s owners Nine and has put a proposal to the Government regarding a possible transaction. However, NZME notes that these discussions are preliminary... More>>

Consultation: Plan Of Action To Protect Seabirds

The draft National Plan of Action plan outlines the Government’s commitment to reducing fishing-related captures of seabirds, with clear goals and objectives, supported by an implementation plan. More>>

ALSO:

Housing Issues: Fairer Rules For Tenants And Landlords

The key changes include: - Limit rent increases to once every 12 months and banning the solicitation of rental bids by landlords. - Improve tenant’s security by removing a landlord’s right to use no cause terminations to end a periodic tenancy agreement... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range... More>>

ALSO:

Food Prices: Avocados At Lowest Price In Almost Three Years

Avocados are at their cheapest average price since February 2017, with tomato, lettuce, and cucumber prices also falling, Stats NZ said today. More>>