Meat firms propose merging

By Philippa Stevenson

Meat industry rationalisation has continued apace with big North Island company Richmond outlining its second major change this month.

Richmond yesterday proposed a merger with Wanganui-headquartered Waitotara Meats, the day after the South Island's Alliance announced plant rationalisation.

The Richmond-Waitotara deal is significant for involving a company set up in 1987 to show large struggling "dinosaur" companies how to do business.

Waitotara chairman and founder Rod Pearce said yesterday that while Richmond was one of the big companies, he had never regarded it as a dinosaur.

"As early as 1991-92 we were considering, on both sides, that there was pure logic in these two companies coming together when the time was appropriate."

He said that despite Waitotara's success in productivity, quality and branding, it still had been unable to maximise profits over the last three seasons because of industry pressure for livestock and seasonal finance. The merger would "provide the grunt."

Richmond chairman Sam Robinson said both Waitotara plants would be retained, along with Richmond's two major lamb plants at Takapau, south of Hastings and Oringi at Dannevirke.

"It's a win-win for both Waitotara and Richmond."