NZ sheep-genes plan for China

More than 100,000 Chinese sheep may get a genetic leg-up from New Zealand as part of an agreement between Landcorp and Shanghai Pengxin.

The conglomerate faces a last legal hurdle in its bid for the 16 North Island dairy properties that make up Crafar Farms when the High Court at Wellington considers a second appeal from rival bidders led by Sir Michael Fay today.

Landcorp has signed on to a joint venture to manage the farms, but must wait for the legal hurdles to be cleared.

Chief executive Chris Kelly said the deal would allow it to enter China, where Shanghai Pengxin had access to 10,000 hectares of land for agricultural development.

‘‘We’re going to look at exporting genetic material. Shanghai Pengxin has about 100,000 sheep in China and is looking to advance flock progress. It recognises that New Zealand has some superior genetics, and is keen to talk to us about spreading those genes through its flock.

‘‘It’s not always easy to distinguish between a sheep and a goat in China. What they’re looking to do is have access to a secure supply of quality meat, which is what we produce and they can’t.’’

A scanner could be set up in China to measure meat yield, and genetic material could be sold outright or through a royalty system. ‘‘We will make damn sure we protect revenue flows for New Zealand,’’ Kelly said. ’