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Dairy Farmers hopes rejig plan will win favour
17 Mar 2003
Dairy Farmers will make a third attempt to restructure the co-operative. Managing director Calvin Boyle said he was optimistic that the new plan addressed the concerns of farmers who defeated the last restructuring proposal in 2001.
Although 63 per cent of farmers supported the last plan, it needed 75 per cent to get through. The major concerns were about loss of control and the extent of the financial benefits.
The new plan would be similar to the last two in splitting production and marketing away from the co-operative business unit which purchases milk from farmers. The production business may be floated on the sharemarket. Mr Boyle said a listing would be an effective option if it gives members greater choice.
Mr Boyle also said Dairy Farmers is "comfortable" with its 9.2 per cent stake in National Foods which was bought to ensure the co-op had a say in any industry rationalisation. Talks have stalled, but Mr Boyle said "we're patient... things will happen when it's right".
Sydney Morning Herald, 17/3/03.
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