A consortium led by South Canterbury potato and onion exporter Southern Packers will take over the business in November subject to a successful conclusion to sale negotiations, said Biodiesel New Zealand’s State Owned parent today.
The consortium is meeting with growers’ representatives this afternoon. Chair of a growers group, Jeremy Talbot, told Rural News it’s a welcome development.
“The fact there have been several buyers bidding for the operation confirms our assertion all along that this is a viable industry for Canterbury and the country and we look forward to meeting with [the consortium] and hearing their business plans to take the industry forward and ensure growers get their fair share.”
In August Solid Energy announced it wanted to sell Biodiesel New Zealand “at the earliest opportunity, in whatever form,” though it has subsequently emerged it had been seeking to exit the oilseed rape processing business for some months prior to that announcement.
The business had already been split into two divisions: one manufacturing and marketing biofuel, including product made from waste vegetable oil, and an agri-business division contracting farmers to grow oilseed rape and process and market the resultant seed and oil from Biodiesel’s $16m purpose-built storage and crushing facility at Rolleston, just south of Christchurch.
The consortium also includes Midlands Seed, Biodiesel New Zealand’s current agri-business manager Nick Murney, and an agronomist currently contracted to the business.
Solid Energy says the consortium’s bid is a going concern offer and their intention is take the oilseed rape industry forward in New Zealand.
Solid Energy is also currently considering bids for Biodiesel New Zealand’s fuel division.
Southern Packers grades, packs and exports onions to the United Kingdom, Europe, and Asia as well as supplying domestic markets. It is owned by growers Murray Turley, Ross Hewson, Pye Produce, and Tony Howey through his majority stake in Alpine Fresh.
Midlands Seed, Ashburton, produces and markets vegetable, herbage, legume, cereal and oilseed seeds.
