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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news