Farmers disappointed at announcement

4 November 2008

Farmers disappointed at announcement

Federated Farmers Meat & Fibre Chairman, Bruce Wills has expressed disappointment at yesterday’s announcement that Silver Fern Farms Limited has terminated the agreement relating to the partnership proposal with PGG Wrightson.

“The failure of this proposal is yet another hurdle that farmers will have to overcome in their quest for a viable and sustainable industry.

”Both companies have worked hard to make this partnership happen, but I think we all understand how difficult raising the money required was going to be in light of the current world financial turmoil.

“Farmers were looking to this partnership to deliver an injection of capital, a more integrated supply chain and new management thinking.

“While it is encouraging that Silver Fern Farms has said its future is not dependent on the partnership transaction, it is likely changes that would have been implemented with the injection of new capital will take longer to be realised.

“As I have previously stated, the supply chain initiative recently unveiled by Silver Fern Farms is very much a step in the right direction towards reaching the Federated Farmers T150 goal of $150 for an average mid-season lamb.

“Federated Farmers wants all those involved in the lamb supply chain, from the paddock to the plate from farmers to processors, researchers, marketers, transporters and supermarkets to lift their sights and help achieve the T150 goal.

“The announcement provides suppliers with some certainty around the situation. I hope that this disappointment will act as a stimulus to the wider industry to press forward with the changes that are badly needed,” Mr Wills said.

ENDS

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