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Late Show Group on Dairy Merger

Greetings Readers

The plodding and hopeful forward motion of the dairy industry to a decision on its future structure is again being battered by pronouncements of a “grand alternative” to that that has been presented by the GlobalCo formation directors.

The intriguing thing of the Masters/ Bailey proposition to be announced is the apparent support of the Act political party in a behind the scenes role.

What can be the purpose of such an association? If as is reported, the majority of the support for the ‘two equal cooperatives’, comes out of Taranaki – it can hardly be for reasons of vote catching.

However, it is ironical that the Taranaki grouping that is objecting to the ‘one true way’ advocacy of the GlobalCo proposal are members of an earlier manifestation of Kiwi that benefited from a hardnosed merger with Tui Milk Products.

But why are they so late into their objection? What more can be wrung out of the debate and negotiation that has gone on for nearly five years? Market perfection may be a laudable intention but an unlikely outcome.

Perhaps they are just a group of opportunists who have seen an opening in the weakness of the industry leadership displayed on all sides of this merger. But whatever proposal they bring forward it will be up against the fundamental problems of a cooperative - the improvement of benefit to both the market and shareholders.

The real work will begin following the 18 June vote which ever way it results.

Frosts and fine days will be playing hell with the feed.

Good Farming




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