Published By : 15 Sep 2015 | Published By : QYRESEARCH
A unit of state-owned Chinese food product supplier, Bright Food Group Co. Ltd. has plans to take over half of the largest meat co-operative in New Zealand, Silver Fern Farms, for a hefty sum of NZ$311 million (US$197 million). As of now, China is looking into the prospects of import of agricultural products of the nation.
Silver Fern Farms, a beef and sheep-meat exporter, stated that it is in the process of selling its 50% stake to Shanghai Maling Aquarius, a food processing unit and a subsidiary of Bright Food. This procurement will provide Silver Fern Farms funds that it will use to repay the debt and as a help to stimulate its exports.
China has emerged as the biggest meat consumer nation across the globe and the increment in the middle class population has encouraged companies to find the sources for dairy, meat, and other proteins overseas.
Mr. Nathan Penny, an ASB rural economist, stated that the long term prospect is showing positive signs for New Zealand’s agriculture including meat, so they are not surprised to see overseas’ interest in local agribusinesses.
This procurement has given the Bright Food the access to the high quality product of Silver Fern Farms and help it in raising its revenues about 3 times compared to 2014 and reach around 30 billion yuan (US$4.71 billion).
After this deal, Bright Food will become biggest consolidated beef and lamb industrial group in China, stated Shanghai Maling. The officials for Shanghai Maling and Bright Food declined to comment further on the deal.