Silver Fern 'flatout' as venture approvals loom

Dean Hamilton.
Dean Hamilton.
Chinese regulatory approval for the Silver Fern Farms-Shanghai Maling deal is hoped for "in the next month or so''.

In a recent update to farmers, Silver Fern Farms chief executive Dean Hamilton said it was also hoped Overseas Investment Office approval in New Zealand would be forthcoming between April and June.

Those approvals were the final hurdles to overcome before the proposed 50:50 joint venture, which gained shareholder support, could go ahead.

Silver Fern Farms was "flat out'' processing more than 200,000 cattle, 20,000 sheep and 3500 deer each week, Mr Hamilton said.

Despite those numbers, there were queues forming, as was normal for the peak period of the year, and the company understood the impact weather conditions were having on suppliers, he said.

End markets for lamb and beef commodity products had continued to weaken and it was a "tough world out there'' in virtually every commodity.

Red meat was not immune.

China was under economic pressure and was reducing its commodity purchases, the United Kingdom and Europe continued to be relatively stagnant, and the Middle East was not as prosperous with oil at $29 a barrel.

As far as farmgate prices, and assuming the currency stayed where it was, the risk appeared to be to the down side other than in venison, which was expected to hold.

Last week marked the first week of producing a new German retail range of lamb and venison.

The launch into Germany late next month would be Silver Fern Farms' biggest yet, with more than 1000 stores of one chain involved, while beef retail products would follow in June-July.

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