No second chance for dairy merger, says GlobalCo chief

12.00 pm

Chairman of Global Dairy Company, John Roadley, says there will be no second chance at the mega-merger proposal should the current proposal fail.

Speaking to farmers at the National Agricultural Fieldays at Mystery Creek today, Mr Roadley said the Government would not be prepared to work with the dairy industry on a new merger proposal if the current proposal does not get the support it needs from Kiwi Dairies and the Dairy Group.

GlobalCo needs a minimum of 75 per cent support within both Kiwi Dairies and the Dairy Group to go ahead with the proposal. Farmers will vote at a series of meetings held across the country on Monday.

"The Government's view is that it has invested a huge amount of time and energy into this merger," Mr Roadley said. "It won't do it again."

He said it was vital that no shareholder voted to reject the proposal "expecting a more comfortable cab to come up to the rank anytime soon". He said this simply would not happen.

"We've been debating this issue, and working with two governments, for several years. The Government and the Opposition have both worked constructively with us over the last six months, and both say they will back the necessary legislation to make the merger happen."

Mr Roadley told farmers not to fool themselves that if they voted against the proposal, there would not be another chance to merge the two dairy companies.

Mr Roadley today confirmed that polling showed the vast majority of the nation's 14,000 dairy farmers are in favour of the merger.

He said the data also showed the industry was above the necessary 75 per cent threshold "but possibly only just".

The poll, of 2000 voters, was conducted by independent polling group UMR Research over the past fortnight.

"Every vote counts. Each shareholder could potentially be the one to tip the vote one way or the other."

It was important for every shareholder to vote to establish a strong mandate for the new company.

Mr Roadley said he wasn't keen to pick what would happen should the vote fall short of the necessary 75 per cent threshold.

"We would be in an extremely difficult position: the vast majority of farmers supporting the merger, but a couple of votes short of making it happen."

This would create the risk that people outside the dairy industry could become involved in determining its future, he said.

Shareholders intending to vote by proxy must ensure their proxy forms arrive at their companies by tomorrow morning.