SFF chief optimistic on mediation talks with PGGW

Two of NZ's biggest agricultural companies remain working through a dispute mediation process, but with one of those parties optimistic an outcome will soon be reached reports Business Day. Silver Fern Farms chief executive Keith Cooper yesterday said he hoped the mediation would successfully resolve differences between SFF and PGG Wrightson in the next couple of months. Early last month Dunedin-based SFF agreed to PGG Wrightson's mediation suggestion over a failed partnership deal via a former High Court judge Robert Fisher, QC. At the time Silver Fern Farms said there were widely differing views held by the legal teams looking at how to resolve the fact that Christchurch-based PGGW defaulted on the $220 million deal with the Dunedin meat processor. Originally it was stated the process was to be concluded by April 18. Cooper yesterday said that date was not binding and talks continued, describing them as "work in progress" with no real deadline. However, he hoped the matter would be wrapped up within two months with dealings between the parties and their advisers "very amicable". Asked what the chances were of a deal in the next two months Cooper said: "We're pretty confident we can get a resolution." SFF has the ability to litigate if the mediation does not produce an agreed outcome. PGGW has previously put forward a $10m compensation offer, saying also that Ferns would benefit from the offer of an ongoing livestock procurement arrangement between the two.