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

 


Blue Sky Meats strengthens Chinese ties as exporter buys 11%

Blue Sky Meats strengthens Chinese ties after exporter pays premium for 11% of company

By Suze Metherell

April 7 (BusinessDesk) – Blue Sky Meats has strengthened ties with China, its largest market by volume and value, after two Auckland-based businessmen paid a premium for 11 percent of the unprofitable meat processor.

Cook Huang and Qiang Zheng acquired the Blue Sky holding from Danish casings company DAT-Schaub Group for $2.33 million, or $1.80 a share in an off market share transfer, according to a Blue Sky statement to the Unlisted platform. Their investment vehicle, Blue Star Corp, is now the third-largest shareholder of Blue Sky. Its shares last traded at $1.10.

Huang exports New Zealand red meat, spring water, juice and chocolate to China through a separate company he set up in September, Everlast International, and with his business partner Zheng, he had been looking for a suitable investment.

Blue Sky had a good management team and produced quality meat and “we want to share” in its growth, he said. He expects it to make “good profits” in 2014. Huang also operates an immigration consultancy in Auckland called Everlast Consultancy.

DAT-Schaub inherited the 11 percent stake of Blue Sky when it acquired Waikiwi Casings in 2010 and had long been looking to sell the shares, according to its statements.

Blue Sky’s losses widened to $3.88 million last year as it was hit by falling meat prices, changing market demand, a high kiwi dollar and ongoing recession in Europe.

“Past investment in Chinese relationships” had been critical in delivering cash flow during the difficult periods, the company said in its 2013 annual report. Its newest shareholder is keen to participate, Blue Sky chairman Graham Cooney told BusinessDesk.

“Blue Star has relationships with Chinese investments mainly in the food industry as I understand it and so they wish to have some sort of relationship with us,” Cooney said. “They’ve been a purchaser of some meat, and that will continue and we’re happy to keep talking to them.”

“The fact they’re a shareholder doesn’t give them any more rights than any other Chinese based purchaser,” he said. “I’ve told them what it gives them is a preferred status to talk to us.”

Huang and Zheng have joined companies including Oravida, associated with the husband of Justice Minister Judith Collins, in the rush to supply New Zealand products to China, the world’s fastest growing major economy and the nation’s biggest export market.

Last year meat cooperative Alliance Group approached Blue Sky about a possible takeover but Blue Sky withdrew from talks after failure to agree on key terms. Both processing companies are based in Invercargill.

The farmer-led Meat Industry Excellence group has been pushing for closer integration of meat companies in an industry where processors outbid each other for dwindling numbers of livestock to push through plants with surplus capacity. The group has gained representation on the boards of Silver Fern Farms, the nation's largest meat cooperative by revenue, and Alliance, the second largest.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news