Farmlands chairman backs merger

ALI TOCKER
Last updated 05:00 23/01/2013

Relevant offers

Farming

Sheep industry celebrates its best Federated Farmers' William Rolleston vice president of world farming body PGG pays testing costs for swede-related cow illness Lengthy drought still major concern in Marlborough Sheep industry winners celebrated Deadly chemicals sold on Trade Me in drink bottles Dairy farmers help out flood-stricken colleagues Fonterra on defensive over role in Eltham milk dumping Meat industry merger moves gather pace Fonterra's $235 million state-of-the-art rebuild of Pahiatua dairy factory

Farmlands chairman Lachie Johnstone says he is disappointed at criticism of the proposed merger of Farmlands, a North Island rural supply company, with its South Island counterpart CRT.

But he says open dialogue is part of the process and it is up to shareholders of both farmer-owned co-operatives to make the final decision.

Two member-elected directors of Farmlands have resigned from the board in protest at the proposed merger. Charlie Pedersen, who represented West Coast, North Island, and Hugh Ritchie, East Coast, North Island, have quit just days before merger details and voting forms are due to go out to members.

In a joint statement, Pedersen and Ritchie said that, as the two largest transacting directors on the Farmlands board, they did not believe the proposal was in the best interests of members, setting out four key areas of concern.

Johnstone said a lot of work had gone into seeking to address the concerns of the two men in recent weeks.

He believed the merger proposal was robust and would bring a range of benefits to members including economies of scale, increased efficiencies and improved returns. Professional advisers had reviewed and validated the proposal, he said. Fairfax NZ

Ad Feedback

- BusinessDay.co.nz

Special offers
Opinion poll

Is it time for authorities to introduce tougher penalties for poaching?

Yes

No

Vote Result

Related story: Booby traps for poachers cost farmers

Featured Promotions

Sponsored Content

Agri e-editions

Digital editions

Read our rural publications online