KEY POINTS:
Farmers have dismissed proposals to set the meat industry on the road to consolidation but they still want change, according to Alliance Group chairman Owen Poole.
Farmers in Southland-based co-operative Alliance comprehensively voted against resolutions brought by the Meat Industry Action Group.
Farmers were 92.4 per cent against a resolution seeking support for a single farmer-owned co-operative and to making the boards of Alliance and rival co-operative Silver Fern Farms work together.
Farmers also voted 86.3 per cent against a second resolution for meetings in March to remove and re-elect all directors.
"I think it's a good thing that the result was clear and decisive so it allows us to move on now," Poole said.
The Alliance board advised farmers reject the resolutions as they gave unacceptable power to the action group-appointed chairman, undermined board responsibility and the case for a merger with Silver Fern Farms had unacceptable risks.
However, there was now an opportunity within the industry for dialogue towards forming a common view for a better future, Poole said.
"A successful industry solution will be one that the industry develops and supports as a whole," he said.
Sheep numbers dropped 11 per cent in the year ended June 30 to 34.2 million after the impact of drought and the expansion of dairying, while farmers have faced three years of low returns.
Meat & Wool New Zealand said it expected the export lamb and sheep slaughter in the season starting October 1 to be down 6 million and 3.3 million animals respectively.
The action group's aim had been the creation of a farmer-controlled, market-led company that accounted for 80 per cent of red meat procurement, processing and marketing
"They're [farmers] not saying don't aggregate they're just saying they agree with us that the model that is proposed [by the action group] is not the right one," Poole said.
Action group chairman John Gregan said the group had been humbled by the vote, which was a strong vote of confidence in the board.
Federated Farmers Meat & Fibre chairman Bruce Wills said he thought the vote might have been closer.
Dunedin-based Silver Fern Farms holds a shareholder vote on Monday on plans to sell half the company to listed rural services business PGG Wrightson for $220 million.
Proposal panned:
Alliance Group farmers voted against Meat Industry Action Group resolutions.
92.4 per cent against a resolution seeking support for a single farmer-owned co-operative processor and for the boards of Alliance and Silver Fern Farms to work together.
86.3 per cent against a resolution for meetings in March to remove and re-elect all directors.
