Bickering clouds mega co-op data release

By PHILIPPA STEVENSON

Federated Farmers say dairy farmers want the word on the mega co-op straight from the horse's mouth, but bickering has erupted over its mandate to make the call.

Yesterday, Dairy Farmers of NZ said around 95 per cent of farmers consulted in the upper North Island last week firmly supported the formation of MergeCo for "practical and pragmatic reasons."

The lobby group's chairman, Charlie Pedersen, said New Zealand Dairy Group suppliers were looking forward to the release of the mega co-op business plan by the end of the month.

Last week, the mega co-op establishment board presented the plan - a five-year forecast of benefits from an integrated industry - to the major companies, Kiwi Dairies and New Zealand Dairy Group. They are expected to show it to farmers, but not before next month.

Mr Pedersen said farmers already consulted wanted the business plan distributed and explained by the establishment board "to guarantee all farmers receive the same presentations, regardless of the dairy company they supply."

Board chairman Graham Calvert said he believed the majority of farmers expected to get information from their companies, and the companies expected they would be the ones to divulge it.

He doubted the depth of Dairy Farmers' consultation, saying he had been told there were only seven farmers at a meeting at Tatuanui, and he couldn't find anyone who knew another had been held in Pukekohe.

Mr Pedersen claimed an average of 40 to 50 people attended last week's seven meetings, but another person who attended estimated there were about 15 farmers at Tatuanui besides Dairy Group chairman Henry Van Der Heyden and staff members.

Mr Pedersen: "There were seven [just] at the top table at Tatuanui and the hall was full at the Pukekohe meeting, which was attended by [Dairy Group director] Murray McNaughten." He said his group had consulted "far wider than the establishment board has. There is no evidence of them talking to farmers at all."

A Dairy Group spokesman, Graeme McMillan, said the mega co-op was a major strategic initiative and companies had a responsibility to report on it to their shareholders.

Mr Pedersen said a range of views had surfaced during the consultations but there was no opposition mood to the mega co-op among Dairy Group suppliers, as had been suggested.

Farmers were opposed to dairy industry shares being tradable - unless fully linked to milk supply - because they believed it would cost them control of their industry.

He said Dairy Farmers of NZ would formally put the farmers' request for direct meetings to the establishment board.

The plan being put to farmers is the fifth in five years.