Co-op edges closer to reality

By Philippa Stevenson

The protracted negotiations over the key dairy industry merger between New Zealand Dairy Group and Kiwi Co-op Dairies are to run on.

Yesterday, the two company chairmen met a self-imposed deadline for announcing an "agreed position" by reporting only that steady progress was being made.

Kiwi's John Young and Dairy Group's Henry Van Der Heyden said the latest round of discussions had seen the parties move closer together in several areas.

They said they were encouraged by the Dairy Farmers of NZ poll which found that 74 per cent of farmers ranked a commercially viable mega co-op involving at least 90 per cent of the industry, as their first preference.

"All our efforts are being put into reaching a fair deal that shareholders will accept and which will provide a sound financial base ... The industry cannot expect any of our shareholders to trade their interests for the sake of a rushed deal."