Silver Fern Farms is not impressed by the offer of $10 million from PGG Wrightson in compensation for failing to complete a partnership deal last year.
PGG Wrightson (PGGW) yesterday issued a statement offering mediation and $10 million in compensation to Silver Fern Farms.
Silver Fern chief executive Keith Cooper was caught unaware by PGGW’s press release, a tactic he said was antagonistic.
“It is particularly antagonistic to start playing negotiations via the media with something that appears to be heading towards the courts.”
When two parties start communicating via media release it’s a sure sign their relationship is deteriorating.
PGW’s half year report is due out next week and it’s unlikely to be very pretty.
The company’s offer to take a 50% stake in SFF upset a lot of its clients. It didn’t go down well with a lot of its staff either, some of whom have left the company and set up in opposition to it.
On top of that drought and other problems in Uruguay combined with the fall in the international price for milk will be hurting its dairying venutres there.