Waikato Federated Farmers president Peter Buckley said his lobby needed to meet the boards of both organisations to determine the effects such a merger would have on farmers.

Dairy InSight is responsible for collecting farmer levies to fund research projects that companies such as Dexcel then develop.

"There is concern one operator could be biased towards Dexcel or opposed to AgResearch or the Animal Health Board," Mr Buckley said.

North Waikato farmer Jim Cotman said he was "most upset" about the proposed merger. "As a levy payer I'm very unhappy."

Mr Cotman said it was important to have two separate organisations, one to collect levies and one to deliver the results.

"We just got through changes and then this stupid review process started . . . We're going back to the past instead of looking forward to the future."

Mr Cotman said he was "gobsmacked" when he heard of the proposed merger.

"I don't think any sense has prevailed. I'm very clearly against a merger. It will lose transparency, fudge the edges. It will be hard not to favour Dexcel - it's a two-armed bandit now."

A review board was set up by the Fonterra Shareholders' Council last year, after farmers nationwide criticised the industry for failing to deliver on productivity.

The review board commissioned a report on the proposed merger, which received 380 submissions in favour of the merger and just 25 against.

Source: Waikato Times