A bad debt of more than $30,000 has been written off by the Gore District Council after the closure of a processing plant used in the production of wagyu beef.
The council last week agreed to write off the unrecoverable amount from Black Origin Meat Processing (Gore) Ltd of $34,375.43 and record it as a bad debt for the financial year ending June 30, 2026.
Black Origin Meats Processing (Gore) Ltd is a related company of Ex-BSMG Limited (formerly Blue Sky Meats Gore) Ltd, which was put into liquidation by shareholders’ special resolution on December 20, 2024.
The council had lodged claims as both a secured creditor and unsecured creditor.
Amounts claimed as a secured creditor for rates and water totalling $24,256.18 were fully paid.
An amount of $102,995.89 was claimed as an unsecured creditor for unpaid trade waste and rental charges.
The council received partial payment of $68,620.46, leaving a balance of $34,375.4.
Origin Corporation Ltd was co-owned by Canterbury business man Arato Tsujino and Auckland investor Guanxiong Liu.
Mr Tsujino was known for his involvement in the wagyu beef industry in New Zealand.
At least 16 of his companies went into liquidation in 2024 due to financial problems.
Blue Sky Meats (Gore) had bought the River St abattoir from long-standing Southland meat processor Blue Sky Pastures in 2021.
The 2021 buyer then processed its Japanese wagyu beef through the plant.
The company promoted its wagyu beef as a perfect combination of New Zealand’s lush grass, high-quality grain, pure water and clean air, along with traditional Japanese farming techniques which included giving the cattle massages and playing soothing music.
The cattle were grazed for their first two years on farms throughout the country before being finished on grain at a "state-of-the-art" barn in Rakaia.
The meat was processed at the Gore plant.
The operation ran into problems during the Covid-19 pandemic, coupled with a drop in demand from China, while costs were mounting.
By Angela Walker