M&WNZ disappointed over merger concept failure

MEDIA RELEASE

18 April 2008

M&WNZ disappointed over merger concept failure

Meat & Wool New Zealand has expressed disappointment that the concept for forming a new entity to consolidate the meat industry in New Zealand has failed.

Chairman, Mike Petersen said the proposal to restructure and consolidate the meat industry, led by Owen Poole, has had the support of Meat & Wool New Zealand.

 “We are bitterly disappointed that the concept will not progress to the next stage of assessment.

“Lack of profitability for sheep and beef farmers continues to be a critical issue and although prices are now rising in the market, it has become increasingly clear that structural change is required to enable better returns for farmers in the long-term.

“The issue of food security is the new phenomenon sweeping the world and New Zealand is well placed to capitalise on this opportunity - however bold changes are required to ensure we capture these benefits,” Mr Petersen said.

At the recent Meat & Wool New Zealand AGM in Palmerston North, Mr Petersen urged farmers to work with meat companies to address the lack of industry profitability.  He reinforced the importance of surety of supply by farmers so that the companies could focus more on the markets and less on farm gate procurement.

“We have tinkered with the industry for the last 20 years and it’s time to use this window of opportunity to make a change.

“Meat & Wool New Zealand sees itself contributing to the momentum for change currently demanded by farmers.  So while today’s announcement may be seen as a setback, Meat & Wool New Zealand will be promoting to the Meat Industry Taskforce the need for ongoing analyses of options that will provide a better future for our farmers and industry.”

 
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