The leader of a farmer group lobbying for change in the meat industry says the South Island meat company Alliance has a responsibility to its shareholders to consider a suggestion by its major competitor Silver Fern Farms to merge.

Two years ago, Silver Fern's attempt to initiate merger talks failed and now it’s giving it another go.

This week the company sent an open letter to farmer shareholders of both meat companies, asking whether a merge should be reconsidered.

Alliance Group Chairman Owen Poole doesn't think re-opening discussions will achieve anything, but Sarah von Dadelszen, who heads the Realise Industry Potential group, disagrees, saying it is a farmer initiative.

“I don’t believe that people should hold this industry to ransom, and at the end of the day, we as farmers own the co-operative, so we should be able to decide its future,” said Ms. Von Dadelszen. “All that people are asking is looking at a business case, not saying anything about it having to be a merger or any particular structure at this stage.”

Ms. von Dadelszen says it's important farmer shareholders of both Alliance and Silver Fern Farms make up their own minds about the merger.