Thursday, June 9, 2016
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Farmer: The plan is to close Fairton BY MICHELLE NELSON
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A meat company’s attempt to scotch reports it intends to close processing plants in Ashburton and Gore doesn’t wash with at least one Mid Canterbury farmer. Last week Silver Fern Farms chief executive Dean Hamilton refuted claims the co-operative has earmarked its Fairton and Waitane plants for closure as part of its rationalisation process. Other than the announced decision to relocate venison processing from Islington to Pareora, there were no plans for further closures planned for next year, Mr Hamilton said. Foothills farmer and company shareholder, Blair Gallagher, says this is at odds with information provided to the
Chinese company angling to obtain a 50 per cent shareholding in Silver Fern Farms. Mr Gallagher said he remained committed to the company’s strategy and strong brand, but as a concerned shareholder was concerned about the way shareholders had been misled. “Silver Fern Farms was quick to quash the reports, but the facts remain – the documentation provided to Shanghai Maling,” he said. “The South Island plant optimisation plan is to close down the Fairton and Waitane plants.” Savings from closure of these two plants will produce cashflow of $NZ23 million and lead to growth and ebitda (earnings before interest, taxes, depreciation, and amortisation) of $12.4 million
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in 2018, according to the report. Mr Gallagher and Rakaia Gorge runholder John Shrimpton have had the translated 580-page document for several months, and have been scrutinising the details. Mr Shrimpton, representing a group of 80 shareholders, successfully petitioned the board of Silver Fern Farms to call a special meeting of shareholders to reconsider the deal, with Mr Gallagher’s support last month. Silver Fern Farm shareholders will vote on the proposed partnership and restructuring plans in Dunedin next month.
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