By Philippa Stevenson
Key dairy industry leaders have moved to put the brakes on a headlong rush towards a mega co-op, driven by Taranaki's Kiwi company.
Dairy Board chairman John Storey responded strongly yesterday to Kiwi's initiative to create a mega co-op embracing all manufacturing companies set up by June 1.
"It is
time for cool heads and not for plucking solutions out of the air," he said.
Dairy farmers' interests were best served by finishing the industry strategic planning and structural options process, he said.
"I have undertaken to farmers that they will have an opportunity to consider the recommendations. I intend to ensure that they [do] and are not railroaded for reasons of sectoral or partisan interest," Mr Storey said.
The giant Hamilton-based Dairy Group, which only yesterday gained final approval for its merger with the South Island Dairy Co-op from the southern suppliers, is central to the success of the mega co-op idea.
Chairman Doug Leeder also urged continuation of the structural options process.
"We see no value in suddenly trying to break ranks and hijack this process to try and meet some artificial deadline. By any assessment, trying to effect an industry-wide merger by June 1 this year is totally unrealistic.
"But what could be appropriate, and I don't have any problem with it, is the process starting now," he said.
His board would consider industry recommendations and "if it considered it the best option for going forward would put it to its shareholders."
Yesterday, Kiwi chief executive Craig Norgate said speedy resolution was in the best interests of company and Dairy Board staff, and overseas customers who feared industry fragmentation.
"You can't lift the lid on this sort of thing and then have it hanging around for months on end. I ask why you would want it to take forever? Talking about it isn't putting money in farmers' pockets."
Mr Norgate said the outcome of the industry team's work on structural options would be known well before farmers were asked to vote on the mega co-op.
It could take effect from June 1 with some issues, such as Commerce Commission clearance, achieved after the date.
