CFM shareholders meeting sought

Press, 6 May 1981, Page 29

CFM shareholders meeting sought

Primary Producers Cooperative Society, Ltd, will seek a meeting of shareholders of Canterbury Frozen Meat Company, Ltd, now that it has virtually achieved its aim to increase its CFM shoreholding to 35 per cent. Mr R. A. Burnside, chairman of P.P.C.S. said yesterday that his company, as the largest single shareholder in CFM, is concerned that CFM, remain basically a meat processing company. “We are concerned that there are intentions by CFM to diversify but of the meat processing industry and therefore to use funds generated by producers in areas which will not benefit farmers or shareholders,” said Mr Burnside. “Most diversified acquisitions by meat companies have produced poor results in relation to their main activity — meat processing. We believe that the profitability of freezing companies is bound up in the effective management of processing works. “CFM is an effective meat processing company and we do not want to see this effectiveness diluted by

forays into other areas which may appear attractive but provide little if any further advantages for the producers or shareholders of CFM.” “Our basic aim in seeking further shareholding is to emphasise once again that the freezing industry is vitally important to the farmer. “As a meat marketing company. P.P.C.S. seeks what is’in the best interests of the farmer. The producer and the freezing industry must remain inextricably tied together if we are to achieve the most effective management of the meat industry in New Zealand. “We believe that P.P.C.S. and CFM have complementary strengths which can be used to great advantage for the farmer supplier and CFM shareholders. Our increased shareholding in CFM is designed to further protect all these interests,” said Mr Burnside. P.P.C.S. has informed the Board of CFM both of its intention to increase its shareholding to a minimum of 35 per cent, and of its intention to call a meeting of all CFM shareholders.