It says the move acknowledges the contribution that Silver Fern Farms chairman Rob Hewitt is making to preserving and strengthening the co-operative model.
MIE chairman John McCarthy says recent SFF road show meetings underscored the gains the co-op had made in addressing its many challenges, but also the fact that a window of opportunity existed to achieve a farmer-owned and controlled industry model.
"SFF's result shows a company turning its fortunes around," says McCarthy. "While their capital needs remain, and this brings with it some risk, what's more apparent is the opportunity."
He said that, given Hewitt was standing for re-election as chairman, MIE had decided it would restrict its involvement in the SFF elections to a single candidate.
"In our view continuity of chairmen is important as our cooperatives work towards a more viable long term strategy," he said. "This is especially so given the CEO vacancies at both co-ops.
"That said, it's nevertheless important that shareholders of both Co-ops have the option of continuing to elect new leadership and refresh their boards with directors who share a strategic vision for a sustainable solution," he said.
Recent SFF road show meetings had highlighted the window of opportunity that existed for farmer-owned processing assets to lead industry reform, says McCarthy.
"It's no secret that creating a farmer-owned enterprise of sufficient scale and size to improve returns to farmers is a strategic priority," he said. "Achieving this is simply a question of leadership, and this needs to start at our Co-ops."
SFF's restructuring initiatives were understandable and offered both opportunity and risk. The Co-ops capital requirements meant that options around farmer ownership wouldn't remain viable forever, says McCarthy.
"We do think both Co-ops need to act now to seize this opportunity, and we would encourage both boards to think broadly and strategically in the interests of shareholders and the companies."
