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The Meat Industry Action Group has requested special meetings at the sector's two big co-operative processors in a bid for industry consolidation.
Chairman John Gregan said the group had gained the 5 per cent support needed and requested meetings at Dunedin-based Silver Fern Farms and Southland-based Alliance Group.
"We can't force them to merge but we can ask them as directors to sit round a table with each other and develop a plan that they can take back to shareholders with regard to them merging," Gregan said.
The specific resolutions would be released after feedback from the companies.
"Farmers want this national champion, farmer-controlled entity with something like 80 per cent of the red meat industry under one roof and it's about how we get there."
Alliance turned down an opportunity to merge with Silver Fern Farms last year, while a bigger industry mega-merger proposed by Alliance fell over in April without agreement.
Silver Fern Farms this month agreed to sell half the company to listed rural services business PGG Wrightson for $220 million in a deal promoted as creating a pasture to plate supply chain and a platform for rationalisation.
Silver Fern Farms needed 75 per cent shareholder support at a vote expected in September.
"I think that [75 per cent] is going to be difficult to do," Gregan said. "It's quite polarised as farmers seem to be for it or against it, there doesn't seem to be a lot of middle ground."
Farmer control was not negotiable and the action group could not support the proposed equal partnership, although farmers would perhaps have to give up some ownership, Gregan said. "[PGG Wrightson] have indicated they would be happy to shrink their share down to more like 20 or 30 per cent if they could get the likes of Alliance involved in this concept as well and we see that as a step forward for consolidation in the industry and we're certainly not anti that."
Silver Fern Farms chairman Eoin Garden said the co-operative did not view the special meeting negatively.
"We've got a proposal [with PGG Wrightson] which we think will actually add to the agenda or the opportunities which the [action group] group wish to pursue anyway."
