Allied Farmers completes livestock joint venture

Friday 2nd December 2011

Allied Farmers, which is rebuilding after the disastrous purchase of finance companies Hanover and United, has completed a joint venture for its livestock business.

Allied owns 70 percent of the newly formed NZ Farmers Livestock, with the other 30 percent owned by companies formed by existing livestock agents.

“We bring the exiting Livestock team, relationships and supporting systems, a secure financial position, new banking arrangements, and a livestock and farming focused board, intent on operating and building a New Zealand business and livestock market, that delivers for New Zealand farmers,” said Steve Morrison, chief executive.

NZFL will encompass all of the livestock previously operated by Allied, and will further grow the MyLivestock web-based livestock marketing tool.

Allied’s interests in its sales yards will not be transferred to NZFL, and NZFL will provide clearing and administrative services to Allied in relation to livestock sales transactions at those sales yards.

The company also announced the appointment of livestock industry stalwart Colin Morrison to its board. Allied shares are currently up 16 percent, trading at 3.5 cents.

BusinessDesk.co.nz

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