FFNZ Congratulate Cabernet Foods On PMSI Offer

19 May 2002

Cabernet Foods must be congratulated for being the first processing company to offer Personal Money Security Interests (PMSI) under the Personal Properties Security Act (PPSA) says Federated Farmer's President Alistair Polson.

"This legislation has the potential to provide the suppliers of goods a security over those goods that ranks ahead of other unsecured creditors like the banks. Registration of a PMSI will bump the supplier up the priority list in the event of a company collapse vastly improving the chance of a payout, said Mr Polson.

"I trust Cabernet Food's decision to offer PMSIs will be the catalyst for other meat processors to offer the same service to farmers. Cabernet Foods are demonstrating that the PPSA can be used as a positive procurement tool.

"I am aware that some farmers are having difficulty negotiating these arrangements with their processor and I would urge those people to register their concerns with the Federation by phoning PH 0800 327 646.

"One thing is for sure, processors will not provide PMSIs unless farmers demand them and value the outcome through their continued loyalty to the processor."

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