fbpx
Print this page
Monday, 12 October 2015 10:31

SFF shareholders face farmer or foreign control choice, says MIE

Written by 
MIE chairman Peter McDonald. MIE chairman Peter McDonald.

MIE chairman Peter McDonald says the Silver Fern Farm (SFF) deal may be the last decision of significance that shareholders get to vote on.

SFF's history of being farmer owned and controlled would end abruptly if this joint venture proceeded, says MIE.

The group says SFF voters must understand the motivation from Shanghai Maling through its parent Bright Foods, a SOE of the People's Republic of China.

MIE believe the deal is about security of supply for China by controlling processing and distribution, thereby directing product flows as they see fit.

This is not a decision around the viability of SFF as a business. The SFF board, management and suppliers have shown great discipline to considerably improve the co-operatives trading position.

"This is a refinancing issue not a viability issue for SFF," says McDonald.

"In our view it's a decision initiated by the banks, orchestrated by Goldman Sachs and delivered to shareholders by the SFF board.

"What's needed is a decision by farmers for farmers."

The board of SFF began this process reportedly needing $100 million whilst wishing to retain farmer control.

However, the SFF board have recommended that shareholders cede 50% of the company along with key executive powers.

Farmers all know how important it is to "keep a bit of hay in the shed". Only retaining 50% of SFF has effectively "emptied the hayshed", says McDonald.

"Farmers know that retaining ownership and control of their supply chain is the only way."

More like this

Fonterra sells China farms 

After investing over $1 billion and following 10 years of poor returns, Fonterra has agreed to sell its China farms for $555 million (RMB ¥2.5 billion).

Live exports all at sea

Whether 28,000 dairy cattle destined for China, and currently held in quarantine, actually get to their destination is up in the air.

Live cattle exports in limbo

The fate of 28,000 cows in quarantine in New Zealand and supposedly destined for China in the coming weeks hangs in the balance.

Featured

 

Back the sector that backs NZ

OPINION: The biggest issue currently facing our industry is environmental policy, writes Beef+Lamb NZ chief executive Sam McIvor.

National

Lamb price down, but not weak

While lamb prices are starting the new season at around 16% below last year’s levels, they are not outright weak,…

Quota split a major worry

New Zealand meat exporters want the EU and UK to get serious on reaching a deal on post-Brexit quotas.

NZ meat exports at risk

Nearly half of our country’s meat exports are at risk unless there is urgent action by government to allow migrant…

Machinery & Products

Claas cargo wagon

CLAAS has extended the versatility, productivity and user comfort of its CARGOS dual purpose transport wagons with the addition of…

These tractors are pumping

CLAAS has announced it will introduce a new automatic tyre inflation system across its AXION and ARION series of tractors.

Great hay cut at speed

Contractors and farmers on the lookout to mow and condition at higher speeds, while producing better quality hay and forage,…

Fendt enters NZ harvest market

Farm machinery brand Fendt has expanded into the harvester market in Australia and New Zealand, with is Ideal combine harvester.