A West Coaster all his life, Sullivan runs a 650-cow herd at Hari Hari south of Hokitika on land his father set up after World War II.
Westland’s milk price continually running $1 behind the next lowest dairy company has been the killer, not just for Westland dairy farmers but for all the people on the West Coast, he says.
“It’s a very sad day that it’s come to this but there is no choice but to sell.”
He lays the blame fairly and squarely with the directors and senior management.
“As shareholders we asked questions but we didn’t get answers.
“The directors and senior management have … herded us in a corner and given us absolutely no bloody way out,” Sullivan said.
“As shareholders we have not had a say, this whole lot has been a planned move and while the chairman (Pete Morrison) apologised at meetings last week for the oversight in telling us about bonuses that will paid to senior management as part of the sale, that’s just taking the p… out of farmers.
Sullivan has cast his vote.
“I have already voted, yes, for – the reason being, that we have no damn choice.
“We have 60-70% of West Coast farmers in debt with the banks chasing their tails.
“It’s that bloody serious.
“It’s do or die for most of us as there’s no option to go elsewhere.”
Franz Joseph dairy farmer Graham Berry also believes farmers have been pushed into a corner with no way out.
“I’m a Coaster all my life and I’m very sad to say I think there’s only one option,” Berry said.
“The past few years has led to this. It’s the result of silly options that have been taken, like the growth to Canterbury, that have put us in this position.
“For farmers and the West Coast economy there’s no real choice.
“It (July 4) is going to be a very sad day for a lot of farmers and the West Coast people,” Berry said.
Heavily in debt, the 150-year old West Coast dairy co-operative called for help in 2017 and in a bittersweet proposal for its 420 shareholders, a sale to China’s biggest dairy company appears the only ambulance at the bottom of the cliff.
Yili already owns South Canterbury’s Oceania dairy plant and in the sale proposal has committed to pick up all existing Westland milk supply and to match Fonterra’s farmgate milk price for 10 years.
It has also signed up to pay progressive bonus payments to Westland Milk’s senior management executives, including a $680,000 bonus to chief executive Toni Brendish if the sale goes ahead.
A further $360,000 is understood to be on the table for the company’s chief operating officer, $302,000 to its general sales manager and $100,000 to its chief financial officer.
Farmers have also learned Australian investment banker Macquarie, which is managing the sale, will receive $5.8 million whether or not the sale goes ahead and significantly more, though the sum has not been disclosed, if the sale crosses the line.
Morrison declined to comment on any sale-specific business, citing advice against doing so and instead concentrating on preparing for the media engagement after the vote.
He urged all shareholders to vote.
The vote is on the proposal from Hongkong Jingang Trade Holding Co (Jingang), a wholly owned subsidiary of Inner Mongolia Yili Industrial Group (Yili), to acquire 100% of Westland Co-operative Dairy Company for $3.41 a share.
“We need all shareholders to participate in the vote. This is a very important decision for Westland farmers and we want all shareholders to participate,” Morrison said.
At least 75% of the votes cast and more than half of all eligible votes must be in favour for the sale to proceed.
Morrison said a committee of five farners and five representatives of the new owners will be formed to maintain communications and transparency.
The deal will require High Court approval and consent under the Overseas Investment Act.
