Meat processor Alliance says it will discuss the possibility of a merger with rival Silver Fern Farms at its annual meeting in December.

The company has distanced itself from an open letter published by Silver Fern in the media, asking shareholders for their views on a partnership.

Alliance Chairman Owen Poole had no idea the letter was going to print and says Silver Fern could have chosen a better forum.

“This letter was put out without our knowledge.

"The questionnaire is weighted, and the answer they want is ‘yes we support a merger.’

"A more appropriate vehicle, rather than a competitor’s questionnaire, is to discuss it with our own shareholders, and we will do that in December, at our annual general meeting."

Mr Poole says  the merger concept has been looked at in detail in the past, but an Alliance-Silver Fern partnership wouldn’t make financial sense.

"We’ve reviewed the benefits or otherwise of a merger on four separate occasions, and two years ago it went to our shareholders and was voted down by a 90 per cent majority.

"More recently we’ve talked to [Silver Fern Farms] about it, they made another proposal, but in our view it didn’t add up. The risks exceed the benefits.”

State-owned farming company Landcorp has entered the debate as well, backing Silver Fern’s efforts to renew talks.

Landcorp CEO Chris Kelly says the idea has merit, but Alliance may have been put off by Silver Fern’s public approach.

“Owen [Poole] claims that they’ve looked at various sorts of mergers in the past, and the case doesn’t stack up, so I guess from that extent he’s saying it’s a waste of time.

"But there’s a lot of history between the two companies, and who knows what the real reason is?”