Dairy Farmers of New Zealand believes that the announced merger between
Northland Dairy and Kiwi Co-op Diaries Ltd makes it vital that farmers
are urgently given more detailed information on other industry mergers
and the payout projections for the eventual Mega Co.
"Farmers almost unanimously have told me that they believe the formation
of a single dairy company offers them the best structure for the future.
How the industry reaches that position needs to be carefully
considered," said Dairy Farmers of New Zealand Chairman Charlie
"Before voting for a merger that will lower the equity of both Kiwi and
Northland, both groups of shareholders need to consider the implications
of that decision on the most important merger: the merger with NZ Dairy
"NZ Dairy Group has stated its belief that there is a large difference
in equity between it and Kiwi Co-op Dairies Ltd that will need to be
made up in any merger."
"Kiwi and Northland farmers need to know the detail of that proposal. It
is also essential that farmers have payout predictions for the Mega Co
now, so that they can make a truly commercial decision on their future,"
concluded Mr Pedersen.