increase font size
Peter Morrison.
Westland Milk Products' board is working to convince farmers to vote in favour of its sale to Chinese dairy giant Yili.
Within 24 hours of signing a deal with Yili, Westland Milk Products chairman Pete Morrison was back on the West Coast talking to farmer shareholders.
Morrison says the Westland board members were keen to talk to farmers “as fast as we could and explain the deal”.
Yili, which owns Oceania Dairy in South Canterbury, will pay $588 million for Westland Milk at $3.41/share. Westland’s farmers paid $1.50 per share.
Morrison was accompanied to Auckland for the signing by deputy chair Katie Milne and board members Andrew MacPherson and Brent Taylor.
After returning from Auckland, the board held seven pocket meetings with farmer shareholders on the West Coast and in Christchurch.
Morrison says more meeting are planned in coming months; farmer shareholders will vote on the deal at a special general meeting early July.
“The board believes this is a very good deal; farmers will now think about it and then vote on the deal,” he told Rural News.
He admitted that some shareholders were dismayed by the prospect of a proud New Zealnd co-op disappearing.
“It’s a big deal for our farmers and the dairy industry throughout NZ.
For the deal to pass, at least 50% of Westland’s 350 farmer shareholders must vote, with 75% in favour.
ili has guaranteed to collect milk and pay a competitive payout of a minimum of the Fonterra farmgate milk price for 10 seasons from the season commencing August 1, 2019.
A supplier committee of five representatives from existing Westland suppliers and five representatives from Westland under the new ownership will be formed to maintain communications and transparency between existing Westland suppliers and Westland.
Morrison says the board was looking for a guaranteed milk price, guaranteed milk pick-up and maximum value for existing shares in Westland.
He says Westland shareholders know they haven’t been receiving a competitive milk price for several years.
“Farmers on the West Coast need a really competitive payout for their own survival.”
One of the country's leading experts on China has praised the NZ Government for its handling of the recent incident with China over that country's cyber attack on two of our parliamentary institutions in 2021.
Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.
Zespri has unveiled the award-winning KiwiBrothersTM mascots in China for the first time to market its large kiwifruit crop.
Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.
Not all milk processors in New Zealand are struggling; just look at Westland Milk Products on the West Coast.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…
