The Country 16/10/25: Mark Gunton talks to Jamie Mackay

We speak with one of a group of disgruntled large-scale Alliance Group farmers who say “no” to the Dawn Meats deal. But is this just a case of “rich boys throwing their toys”? Does this reflect the views of smaller shareholders? 

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Episode Transcript

Speaker 1 (00:00):
You've heard from Mark One. Let's hear from Mark Gunton,
one of those high profile large scale Alliance group farmers
who say no to the dawn meat steal. Mark, welcome
back to the country. You'll be pleased to know you've
got high level support from Winston.

Speaker 2 (00:16):
Thanks for having us, Jamie, And yeah, that is appreciated. Well,
it's Coe. Hey.

Speaker 1 (00:22):
It's one thing having support from Winston, but he's not voting.
You need support from kind of ground based sort of farmers.
And if we're to believe Mark One, he said ninety
percent of them from the road shows anyhow, don't support
what you guys are up to.

Speaker 2 (00:39):
Of course, the democratic process, Jamie. We'll let it play
out over the next three or four days and on Monday,
s last Tuesday, we're going to know the result.

Speaker 1 (00:48):
Is as I threw this at you last time. But
I am hearing commentary back from my connections, farming connections,
especially down in South and this is a case of
rich boys throwing their always you and your mates.

Speaker 2 (01:01):
Not no, not at all, not at all. Historically, from
my personal perspective, Jamie, corporatives have been anathemat event. They've
been a wonderful excuse for for management performance, poor governance,
and we've seen these corporative stagger from pillar to post
over the last hundred years. But there's really tragic that

(01:24):
we're in a position now we're having had the company
achieve the right outcomes in terms of the money spent,
that they're now finding a problem and dealing with the banks,
but they're now forced to a distress sales situation. Having
right sized the business in terms of getting rid of Smithfield,
having spent money on an ERP program, and we spent
money on health and safety, having institute a new venison

(01:46):
plant at Launville, and now we're being asked to accept
the sales as at pretty much twenty five percent of
the acid value of the company as it was in
the books last year under a stress sale basis.

Speaker 1 (01:58):
But doesn't this deal value the company at half a
billion dollars?

Speaker 2 (02:04):
Well, figures can be made to do wonderful things. I
think I'd be misquoting Rob Muldoern, but you know you
can make them say anything, Well, how much is.

Speaker 1 (02:13):
Their lines group worth? I would have sold half a
Billion's probably pretty good value, isn't it.

Speaker 2 (02:20):
Well, Well, in twenty twenty two, the balance the sholder
is well, the balance sheet suggested the worth of seven
hundred and fifty odd million sholders fund stood at four
hundred and forty seven million in twenty twenty four. That
balance sheet shareholders wealth compartent and diminished by circuit two
hundred million. If you look at the Northern to report,

(02:42):
there was attached to the notice of meaning in the
Scheme of arrangement By's suggesting the midpoint value of our
shareholding and Mark Twin just co oded one hundred and
six million shares. They had a midpoint value of sixty
one cents a year, which suggests that the sharld equities
dropped from four hundred and forty seven million to sixty
one million in the last three years. So how somebody

(03:03):
can pontificate and say it's worth five hundred and one million.
These people are supposedly paying a ninety three percent premium
in terms of their share acquisition price over that sixty
one midpoint, but the reality is they're getting sixty five
percent of the company. They're getting absolute control.

Speaker 1 (03:19):
Well left, yeah, I get all that, Mark, and it's
valiant of you and some of the larger shareholders to
try and maintain this cooperative ethos if you want, but certainly,
and I'm saying to you what I said to Mark.
When I'm hearing from farmers on the ground, especially in
South Then where I have good farming connections, they don't

(03:40):
want to tip any more money into a cooperative that
could fail.

Speaker 2 (03:46):
Well, Unfortunately, the rules of business are that anything can
fail at any time, Janie. That's just a fact of life, right,
But without continued farmer support. And I mean the reality is,
when was the last time the farming community was asked
Tony into this company. It was eighteen months ago and
a really bleak time. I mean, things have improved. And
if we don't invest beyond the farm gate, you know,

(04:08):
as the dairy farming community have done through Fonterra, through
tytur etc. If we don't invest beyond the farm gate,
then we we're going to be exactly where we see
these people. Hope we are Monday dealing with another foreign.

Speaker 1 (04:21):
Company, new farm in northern Southland, Mark Gunton, and where
we can get where we can get some strong Northwest
as I know because I was born, born and bred
just down the road from there. Are you peeing into
a Northwestern? Final question for you?

Speaker 2 (04:36):
All we're doing is giving voice to the democratic process
that they've engaged and in terms of deciding the fate
of this particular concern, we will we will accept, we
will accept the answer, and if there's a no vote,
we accept that there's lots to be done, but we're
very confident that we have a bible plan in place
with capital allocated that we believe we can draw on to.

(05:00):
This company retains in New Zealand farming ownership.

Speaker 1 (05:03):
Okay, Mark Gunton, We're going to await this vote with
great interest. Thank you very much for your time.