FARMING MERGER

Press, Volume CIX, Issue 32114, 9 October 1969, Page 1

FARMING MERGER

The merger of United Wheatgrowers (N.Z.), Ltd, with Federated Farmers of New Zealand was announced by the

chairman of the Dominion agriculture produce section of Federated Farmers (Mr S. T. Lister, of Temuka) at a meeting of the council of the section in Christchurch yesterday.

United Wheatgrowers is the last of the independent farm organisations to merge with the federation. It was formed largely through the efforts of Sir Walter Mulholland, and his son, Mr A. L. Mulholland, a leader in Federated Farmers, played a big part in the merger. The New Zealand Wheat Board Regulations, 1965, authorise the board to pay to United Wheatgrowers a levy, now 2c for 50 bushels, on all wheat sold to the board or a merchant. For this reason, the identity of United Wheatgrowers has been preserved in the merger. The levy will be used for financing the wheat-

growers’ sub-section of Federated Farmers. A report to the meeting said that discussions between United Wheatgrowers and Federated Farmers had been going on for some years on the need for closer liaison and, more recently, a merger which, while preserving the identity of United Wheatgrowers, would create a single authority to act for all wheatgrowers.

The difficulties of having two separate bodies basically composed of wheatgrowers with the same object (to safeguard the interests of wheatgrowers) had been highlighted in 1968, when negotions took place with the Government on the restoration of the basic price for milling wheat to $1.45 a bushel. The articles of association of United Wheatgrowers permitted the company to trade. This right had not been exercised in recent years, but the situation could arise when it might be desirable to do so. Therefore the company would remain in being in the merger against this eventuality. The articles of association of United Wheatgrowers would be altered to reduce

the size of the electoral committee. with the consent of that committee, from 50 to 27 —one each elected from Hawke’s Bay. Wairarapa, Wanganui - Rangitikei - Manawatu and Marlborough, six from North Canterbury, five each from Mid-Canterbury and South Canterbury, two each from North Otago and Otago, and three from Southland.

The board of directors of United Wheatgrowers, as elected by the electoral committee, would constitute the wheatgrowers’ sub-section of Federated Farmers. Mr Lister said that officers of both organisations would be working for a short time on the mechanical details of the merger. The merger, achieved after long negotiations, was a great step forward, because it gave wheatgrowers one voice. The photograph shows Mr Lister (left) shaking hands with Mr R. G. Rainey, the chairman of, directors of United Wheat-' growers.' Mr S. S. Obery, secretary of the North Canterbury branch of Federated Farmers, is in the middle.