PGG Wrightson will not be the preferred supplier for NZ Farming Systems Uruguay.

NZFSU chairman John Parker told shareholders than negotiations last night resulted in a decision to deny the rural services and supplies company a contract with the Uruguayan farm development company.

Instead, PGG Wrightson will receive a letter from the company assuring the continuation of a close working relationship, “including the purchase of farm inputs where [PGG Wrightson] is competitive.”

Singaporean food chain giant Olam International has passed the 50% threshold in its bid to gain control of NZ Farming Systems Uruguay.

In July, Olam announced a 55c a share offer in its quest to increase its stake in the dairy farm development company. This offer was increased to 70c following an indication from Uruguay-based Union Agriculture Group that it would pay 60c a share.

Now Olam’s stake has climbed above 50%, it has declared its offer unconditional and open for acceptance by shareholders until September 24.