PGG Wrightson says the markets for capital raising are closed and it's considering other options to raise funds to buy a 50% stake in Silver Fern Farms.
The $220 million merger is on ice due to market conditions.
PGG missed the deadline for its first settlement, as the banks had not finalised their credit line in time.
Chairman Craig Norgate says raising the funding is proving tricky, as what looks good one day is not viable the next in this economic environment.
He says PGG Wrightson is looking at other ways of raising the money.
Mr Norgate would not commit to any deadline for closing the deal.