16 February 2001
PR 23/2001
Dairy Farmers Send A Clear Message
Dairy farmers support the proposed Global Dairy Company in principle. Support in practice will not be assured until they
are satisfied as to the detail of the proposal. That was the clear message from delegates at the annual meeting of Dairy
Farmers of New Zealand Council.
DFNZ Chairman, Charlie Pedersen said that council delegates were frustrated at the lack of detail available. Farmers as
owners of the industry have the final say in approving the merger but "blind faith is no basis for a commercial decision
of this magnitude", said Mr Pedersen. "Farmers need to be comfortable with the detail and that means more information
must be made available."
Farmers are also frustrated about the lack of consultation in drawing up the merger proposals. " Ours is a co-operative
industry. Its members have a legitimate expectation that meaningful consultation will take place before farmers can be
expected to back any proposal put to them", said Mr Pedersen.
The DFNZ Council has decided to put its weight behind the proposed Suppliers' Council. " Our delegates see this Council
as vital to the success of the Global Dairy Company" said Mr Pedersen. " It is essential that the Suppliers' Council be
robust, capable of rigorous debate and financially independent of the Board. It will be the guardian of the constitution
and will also play a key role in scrutinising company performance"
Delegates warmly greeted Minister of Agriculture Hon Jim Sutton when he told them that the Government supported the
merger in principle but that it had to be correctly structured. Delegates agreed with the Minister that the industry was
far too important for the Government to rubberstamp the current proposal without ensuring that vital public policy
objectives are satisfied.
" They welcomed the Minister's assurance that the Government would not legislate in support of the mega-merger until it
was satisfied that farmers have all the information they need from the dairy companies." said Mr Pedersen.
"As the Minister has said " Our minds are open but open minds need evidence, not rhetoric, to be persuaded" concluded Mr
Pedersen.
ENDS
For further information Charlie Pedersen 025 463 480 Kevin Petersen
04 473-7269