'Grand Alliance' growing grass-fed beef exports to China
Alliance Group and Grand Farm have signed a strategic co-operation agreement with a focus on delivering more premium New Zealand grass-fed beef to Chinese consumers.
Landcorp will operate the farms over the next 18 months and will ensure a smooth transition of the properties including stock and staff when this contract ends, says Landcorp chief executive Steve Carden.
"Landcorp has worked hard with Shanghai Pengxin and is proud of what the partnership has achieved, turning around 16 poorly performing farms. The Landcorp team have done a terrific job," says Carden.
"We're also pleased to have been involved in the implementation of the Central North Island Dairy Academy, which will be launched later this month. Our job here is now done, and we're happy to move on to other opportunities more in line with our new strategy."
Carden says the company is focusing on other areas of growth – principally the value-add strategy under its Pamu brand. Recent examples include our investment in our sheep milk JV and a wool supply contract to Danish shoe manufacturer Gleryps.
Andy Macleod, chief executive of Pengxin NZ Farm Group, says, "Our acquisition of the farms dates back to November 2012 when we entered into a 50:50 joint venture with Landcorp, as 100% sharemilker, charged with developing and managing our farms.
"Over the last three years the joint venture board approved more than $20 million of capital expenditure. This includes the dairy training academy, two dairy sheds, the building of six houses and renovation of a further 60, six effluent ponds, 300km of stock and riparian fencing, 800ha of regrassing and 900 extra water troughs.
"There has been a strong focus on health and safety, animal welfare, compliance and farming sustainability and it has been a beneficial relationship for both organisations.
"We respect and understand Landcorp's decision. We have enjoyed the close relationship with Landcorp and the valuable insights, expertise and experience they have provided.
"Pengxin's NZ-based management has grown significantly since 2012. Within our NZ Farm Group we already manage 18,000 cows and look forward to carefully, sensitively and sustainably managing the transition of staff and animals of the North Island farms in 2017," Macleod says.
Greg Gent, chair of Pengxin NZ Farm Management Ltd, which governs the partnership, says, "The partnership has been a good example of what the investment of capital with local expertise can achieve. They have transformed what were previously distressed assets into well performing farming operations. Amidst some scepticism at the outset, SPG and Landcorp have worked hard to make this partnership a success."
