Shock waves will pulsate through the meat industry following Silver Fern Farms’ announcement yesterday of the deal with Shanghai Maling, predicts Lincoln University professor Keith Woodford.
In his latest blog post, he describes the investment proposal as “remarkable” and says there will be “long faces” at competing co-operative Alliance Group. He wonders whether SFF suppliers might switch allegiance to Alliance and also suggests that Meat Industry Excellence now shifts its focus onto that co-operative.
“Putting the co-operative issue aside, there is much to recommend about the Shanghai Maling proposal. Given their supermarket strengths, they are the ideal partner,” he writes.
Looking forward, he notes even without the changes at Silver Fern Farms, this coming year will be very challenging for sheep processors.