A group of farmers is urging Dairy Meats New Zealand shareholders to think carefully before agreeing to sell the co-operative to Affco New Zealand.
Tokoroa dairy farmer George Moss said there was a groundswell of farmers concerned a sale would mean handing over their destiny for short-term gain.
Horotiu-based Affco
intends spending $44.2 million to buy Dairy Meats, which handles about half the 1.5 million bobby calves killed each year in New Zealand.
Shareholders stand to receive at least $3 before tax for every $1 share they hold. For the sale to go ahead, 75 per cent of shareholders need to support it at a meeting in Te Awamutu on December 13.
Mr Moss said in recent weeks a group of farmers from Waikato, Taranaki and the Bay of Plenty had been in regular contact about the proposal.
He said he was the first to admit Dairy Meats needed changes. But while a sale gave farmers a short-term financial bonus, they would lose control and, potentially, an opportunity.
"We're urging farmers to take a longer-term view and have Dairy Meats re-establish itself as a co-op that farmers can be proud of and that can deliver a greater return."
A restructured Dairy Meats could look at new opportunities in the livestock market, such as live exports to China. Mr Moss said.
Affco had no vested interest in looking after the dairy farmer: "If you don't control your own destiny, who else will control it for you?"
But Dairy Farmers of New Zealand chairman Kevin Wooding said Affco's purchase would give an opportunity for positive change.
He said Affco's proposal appeared to be a fair one and encouraged shareholders to support it.
"Many farmers have not supported Dairy Meats because it didn't meet the service levels required by dairy farmers running efficient businesses," he said.
Purchasing, pick-up and processing of bobby calves was competitive -- and Dairy Meats could not match or better its competition.
- NZPA
