Meat company targets pet food
Export meat company Alliance Group is targeting a global trend by animal lovers to seek high quality protein food for their pets.
Alliance Group chief executive David Surveyor said its investment in a pet food business coincided with major growth in the industry, with global sales forecast to reach up to $134 billion by 2022.
‘‘The demand for premium quality meat ingredients is growing as pet owners around the world become increasingly focused on pet health and food quality. Our New Zealand farmers’ produce is well positioned to meet this need.’’ Alliance had entered an agreement with Scales Corporation to pay $15 million to acquire a 50 per cent interest in its Meateor pet food business.
The new joint venture business was valued at $30m and funded equally by both partners.
Meateor was a processor and marketer of high-quality pet food ingredients to global pet food customers and Alliance was a supplier of raw materials to this sector.
Surveyor said the joint venture would mean Alliance ‘‘could capture more value for each animal, shifting us further up the value chain.
‘‘As a co-operative, we will be ensuring those gains go to our farmershareholders. ‘‘The business provides us with immediate and direct access to the highly attractive and growing global pet food market.
‘‘This investment also gives Alliance Group the leading position in the New Zealand pet food market with Meateor operating processing plants in both the North and South Islands.’’