PGG Wrightson has settled its dispute over a failed alliance with Silver Fern Farms for cash and shares amounting to $42 million.

The agreement ends long discussions on compensation between Silver Fern Farms and Wrightson, after the latter was unable to buy a half stake in the South Island-based meat processor.

Keith Cooper, chief executive, Silver Fern Farms, told 9 Local News today that the settlement will enable the company to invest locally into operational technologies, consumer branding and marketing strategies.

Cooper went on to say that regional plants in Mosgiel and Balclutha will certainly benefit.