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'Wake Up' Alliance Group to Silver Fern Farms implications

Richard Prosser MP
Spokesperson for Primary Industries

23 September 2015

'Wake Up' Alliance Group to Silver Fern Farms implications

New Zealand First is calling on Alliance Group to support our Red Meat Industry Restructuring Bill – it is the last chance for a New Zealand-led restructuring of our two large red meat cooperatives.

“The likelihood of the Chinese government entering New Zealand’s red meat processing sector through a state-owned enterprise is the sum of all fears,” says New Zealand First Primary Industries Spokesperson Richard Prosser.

“A deal with Shanghai Maling to buy-in to Silver Fern Farms will give the Chinese government the say over who is chief executive and its budget.

“Unless Alliance Group wakes up it will be facing competition backed by all the resources of the Chinese government. There will only be one winner from any resulting procurement war.

“If one processor ends up being dominant farmers will be made price takers within a few short years. A good deal now won’t be so good in three years’ time when Shanghai Maling meshes Silver Fern Farms into its global supply chain.

“This is why New Zealand First is asking Alliance Group to swing in behind the Meat Industry Excellence’s Newco proposal. A proposal that is central to New Zealand First’s Red Meat Industry Restructuring Bill.

“The deal for Silver Fern Farms is not a merger of equals but is a takeover as the sums involved suggest. Alliance Group has the influence to work with us and MIE to keep it Kiwi.

“The clock is at five minutes to midnight for our red meat industry,” says Mr Prosser.

New Zealand First’s Red Meat Industry Restructuring Bill can be read by following this link

ENDS

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