Home > Industry News > New Zealand pet food ingredient suppliers enter $30 million joint venture
New Zealand pet food ingredient suppliers enter $30 million joint venture
Two global pet food ingredients suppliers based in New Zealand, Alliance Group and Meateor, have struck a deal that will create a $30 million joint venture, funded equally by both parties. This venture is the result of Alliance Group acquiring a 50% interest in Meateor, which is owned by Scales Corporation, for $15 million.
“The joint venture extends Alliance’s downstream reach, allows Alliance to become vertically integrated and ensures we have an end-to-end connection with the market,” said Daniel Surveyor, chief executive at Alliance. Alliance is New Zealand’s only co-operative owned solely by farmers. Surveyor said the venture is aimed to add value that will benefit its shareholders.
“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 New Zealand pet food market with Meateor operating processing plants in both the North and South Islands,” he added. “Meateor has established itself as a strong domestic and international pet food ingredients business, and we are pleased to be partnering with their high-quality team.”
Surveyor also added that the two New Zealand companies will be able to successfully cater to the increasing demand for premium-quality ingredients, especially meat, in global pet food and treat markets through this partnership.
“We are pleased to enter into a partnership with one of New Zealand’s leading farmer co-operatives. This venture is about developing New Zealand as the premier supplier of pet food proteins,” said Andy Borland, managing director at Scales Corporation.
“We think the venture provides a number of benefits to the entire New Zealand pet food-supply industry including as an avenue for the industry to improve scale; improve relationships with customers including the ability to commit to longer-term relationships; an ability to move into higher value and added value ingredients; and an ability to leverage extended customer and supplier networks.” Alliance supplies a variety of meat products to clients in more than 65 countries outside of New Zealand, but produces and supplies raw red meat, in particular, to pet food processors. Meateor also supplies and markets high-quality pet food ingredients to processors globally.