Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Silver Fern sells Napier tannery to Lowe

Silver Fern sells Napier tannery to Lowe in North Island toll processing deal

By Suze Metherell

March 26 (BusinessDesk) – Silver Fern Farms has sold its Napier rendering plant to Lowe Corp for an undisclosed sum in a deal which will see New Zealand’s biggest meat processor and marketer outsource all of its North Island hide and pelt production this year.

Leathers will be acquired by Lowe at the end of this month as part of a toll processing arrangement where the company will process and market all of Silver Fern’s hides, pelts and wools, in a move flagged last November that is set to “dramatically change” the sector.

Closely held Lowe is the country’s biggest processor and exporter of hides, skins and rendering materials, with eight plants throughout the country. The entire meat industry is grappling with over-capacity and companies are likely to close more meat processing plants in coming years, analysts say.

“It’s a smart strategic partnership where we are collaborating to avoid duplication and to create additional value for our farmers and shareholders in the sector,” Keith Cooper, Silver Fern chief executive, said in a statement.

“At an industry level we have said the industry needs to work together to ensure it is sustainable and this partnership shows we are committed to following through with our intentions,” he said.

The farmer-led Meat Industry Excellence group has this year been pushing for closer integration of meat companies in an attempt to improve efficiency and boost profits. The group has gained representation on the boards of Silver Fern and Alliance Group, the second largest meat cooperative by sales.

Silver Fern will cease rendering on all North Island plants by Sept. 30, outsourcing to Lowe and Wallace Corp.

The company declined to say how much Lowe Corp paid for the plant. Raw hides, skins and leather are New Zealand’s 19th largest export, with $601 million of product sent overseas in the 12 months ended Jan. 31.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news