Silver Fern Farms has announced that it has agreed to sell its 50 percent share in Farm Brands Limited to its partner Modena Investments – a company owned by Italian global rendering company Sapi and local management.
Farm Brands will continue to toll process and market meal and tallow for Silver Fern Farms.
Silver Fern Farms chief executive Dean Hamilton says, “This continues the process of simplification of our business which we started on last year with the sale of our North Island hides processing and rendering assets to Lowe Corporation. We want to focus our resources and energy on executing our differentiated plate to pasture red meat strategy, and in areas that aren’t core to that ambition (such as rendering), partnering with specialists to achieve the best outcome.”
As part of the transaction, Farm Brands will acquire the previously mothballed Silverstream rendering plant and will recommission this plant over the next six months to operate this in the future to service Silver Fern Farms and other industry participants in the South Island.
Silver Fern Farms and Societa Azionaria Prodotti Industrali (Sapi) formed the Farm Brands joint venture in 2009.
New Zealand’s exports of meat and bone meal were worth $152.5 million at the year ending 31 March 2015, while tallow was worth $114.1 million.