Rural News
New SFF joint venture for tallow and meal
9th Jan 09, 1:03pm
by
NZ's biggest meat company Silver Fern Farms and Modena Investments (NZ) Ltd have formed a joint venture company, Farm Brands Ltd (FBL), to buy, produce and market meal and tallow. Modena is owned by Landmark (NZ) Ltd, a domestic tallow trading company and Societa Azionaria Prodotti Industrali (SAPI), an Italian renderer with operations in Europe and commercial agreements in South America reports Business Day.
SFF said FBL would establish new rendering facilities for the production of meal and tallow. NZ currently produces around 150,000 tonnes of meal and 120,000 tonnes of tallow annually, of which about 75% and 90% is exported respectively. Budgeted sales by FBL would initially be valued at about $70m.
SFF chief executive Keith Cooper said the agreement fitted with the company's strategy of improving processing efficiencies and marketing price gains. This ensured added value to supplier partners and customers by way of joint venture initiatives and becoming an international marketing company with specialist partners."As an international exporter, SAPI represents an ideal partner, offering technology, processing and global marketing expertise," Mr Cooper said.
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