fbpx
Print this page
Wednesday, 03 April 2019 08:58

Westland keen to sell Yili deal

Written by  Sudesh Kissun
Peter Morrison. Peter Morrison.

Westland Milk Products' board is working to convince farmers to vote in favour of its sale to Chinese dairy giant Yili.

Within 24 hours of signing a deal with Yili, Westland Milk Products chairman Pete Morrison was back on the West Coast talking to farmer shareholders.

Morrison says the Westland board members were keen to talk to farmers “as fast as we could and explain the deal”.

Yili, which owns Oceania Dairy in South Canterbury, will pay $588 million for Westland Milk at $3.41/share. Westland’s farmers paid $1.50 per share.

Morrison was accompanied to Auckland for the signing by deputy chair Katie Milne and board members Andrew MacPherson and Brent Taylor.

After returning from Auckland, the board held seven pocket meetings with farmer shareholders on the West Coast and in Christchurch.

Morrison says more meeting are planned in coming months; farmer shareholders will vote on the deal at a special general meeting early July.

“The board believes this is a very good deal; farmers will now think about it and then vote on the deal,” he told Rural News.

He admitted that some shareholders were dismayed by the prospect of a proud New Zealnd co-op disappearing. 

“It’s a big deal for our farmers and the dairy industry throughout NZ.

For the deal to pass, at least 50% of Westland’s 350 farmer shareholders must vote, with 75% in favour.

ili has guaranteed to collect milk and pay a competitive payout of a minimum of the Fonterra farmgate milk price for 10 seasons from the season commencing August 1, 2019.  

A supplier committee of five representatives from existing Westland suppliers and five representatives from Westland under the new ownership will be formed to maintain communications and transparency between existing Westland suppliers and Westland.

Morrison says the board was looking for a guaranteed milk price, guaranteed milk pick-up and maximum value for existing shares in Westland.

He says Westland shareholders know they haven’t been receiving a competitive milk price for several years. 

“Farmers on the West Coast need a really competitive payout for their own survival.”

More like this

No easy ride for struggling sheep farmers

Stubbornly high farm input costs, a slow Chinese recovery and a flood of Australian lamb onto the global market are the main factors contributing to the tough times being faced by NZ's sheep farmers.

Westland Milk reports positive season

"I'm more positive now than I was two or three months ago." That's the view of Richard Wyeth, chief executive of Hokitika-based Westland Milk Products (WMP).

FTA good for Aussies and for us – Groser

ANYTHING GOOD for Australia is in the long run good for New Zealand. That’s the reaction of Trade Minister Tim Groser to the news that Australia has signed a free trade agreement with China, and to speculation that their FTA with China is better than NZ’s, especially regarding dairy products.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

A different shade of blue for Norwood

Norwood and ARGO Tractors, the Italian manufacturer of Landini and McCormick tractors, have announced an agreement that gives Norwood exclusive…

Kubota tests diesel engines

Kubota last month used the UK LAMMA Show to test the water with its new 200hp, four-cylinder 09-series diesel engines.