SFF joins the slaughter
Meat processor and exporter Silver Fern Farms Ltd has joined fellow South Island-based meat company Alliance Group in reporting a big loss for the past year.
Chairman Peter McDonald questions whether the proposal is the best or only option available to the company or to farmers. He is calling on farmers to get engaged in understanding and debating the proposal and to question the SFF Board.
"Why has a potential 50% partner been granted executive power at board level which doesn't seem to be reflective of their proposed share?" McDonald asks.
"Of course there are some positive elements to the proposal, but there seems to be very little understanding of the risks or costs to farmer shareholders and the industry."
He says the biggest question of all is why just one option was being put forward by the SFF board.
"Shareholders should be trusted to view and vote on more than one option"
MIE wants Silver Fern Farms shareholders to get engaged in this process. McDonald says farmers should attend meetings and pass on information to other shareholders.
He also questions the "sweeteners" being offered to shareholders in the deal. "These should not be the deciding factor," McDonald adds. "If anything, farmers should be asking why the deal requires a financial sweetener to shareholders if it makes sense in the long run."
