Consolidation of meat industry best way forward

PRESS RELEASE

From Natural Producers Company (NZ) Ltd

For Immediate Use 25 February 2008

Consolidation of meat industry best way forward

Consolidation of the meat industry is the sheep farmers’ best road to sustainability and profitability, according to Natural Producers Company Chairman Murray Rohloff.

At this stage Alliance Group’s concept for the future is the best option to ensure that consolidation occurs, he said. “I would urge all shareholders to give their co-operative a mandate to proceed with negotiations.”

At today’s meeting at Ascot Park, Mr Rohloff, of Tuturau, also said that NPC will not be competing with the Alliance concept. “But the Natural Producers Company option will re-emerge if the Alliance negotiations fail irretrievably.

“We will give our unreserved support for the concept if four important principles are cornerstones in the negotiation and set up of the new company.

“They are that: “1. Farmers have majority ownership, with individual farmer shareholding depending on committed supply.

“2. A mechanism is put in place for share values to reflect the true worth of the new company once industry consolidation targets are achieved.

“3. Negotiations focus on the quality of the deal, not expediency.

“4. Only the highest calibre management and governance personnel are appointed.”

Ends.

© Scoop Media