World-class Food Quality Company Formed By Merger

Company with world-class potential formed by merger

The merger of AgriQuality Limited and ASURE New Zealand Limited on 1 October 2007 will form a new company with the potential to be a world leader in food quality assurance and biosecurity.

John Spencer, who has chaired the merger establishment committee, has been confirmed as the Chair of the new company. Mr Spencer is a former CEO of the NZ Dairy Group - he has extensive experience in the primary sector and maintains a broad directorship portfolio.

John Spencer said today the new company, to be known as AsureQuality, was crucial to the future of New Zealand's economic wellbeing. The country relied on the primary production sector for much of its wealth and income.

“Our ability to compete globally depends on our reputation for supplying safe foods with assured quality," he said.

“That, in turn, depends on the skills of our staff in AgriQuality and ASURE and the technology they use," he said.

Mr Spencer said the name AsureQuality, was reflective of the two existing companies and the broad range of quality assurance services they offered.

Mr Spencer will initially be joined on the Board by Richard Janes, Rakihia Tau (the respective Chairs of ASURE and AgriQuality) and Sam Robinson (a serving AgriQuality director), with additional directors to be decided later in the year. Tony Egan, currently Chief Executive Officer of AgriQuality, will be the new Chief Executive Officer of AsureQuality and Kelvan Smith, currently Chief Executive Officer of ASURE, will be the Chief Operating Officer of the new company.

“We have established an excellent team to lead the new company. We will be moving quickly to capture the benefits of the merger and take advantage of the opportunities offered," Mr Spencer said.

The merger benefits include:

* More capacity to compete globally in the competitive food and produce assurance markets and grow, especially in the important Australian market.

* An enhanced focus on providing quality services and improved responses to biosecurity threats.

* More effective use of all resources, including better co-ordination of skills, technology and infrastructure across the food and assurance markets and new centres of excellence.

* Gains from economies of scope and scale, and better geographical spread.

* Staff working together for the benefit of New Zealand rather than competing with each other in key areas.

* A more stable environment for staff.

“The biosecurity services currently provided by AgriQuality and ASURE are already recognised as some of the best in the world. We also guarantee the quality of much of New Zealand's food and literally millions of people rely on our services every day. AsureQuality will continue those high quality services and will seek to expand and improve what New Zealand offers to the world.

“Recent publicity around the ingredients used in food and food safety generally has demonstrated the vital role we play in protecting and enhancing New Zealand's reputation," Mr Spencer said.

Biographies

AsureQuality Biographies

John Spencer (Chair) is Chairman of Tainui Group Holdings Limited and Telfer Young Ltd. He is Deputy Chairman of Solid Energy and a Director of Tower Limited, Waikato Regional Airport Ltd and WEL Networks Ltd. He was the Chief Executive of New Zealand Dairy Group prior to the formation of Fonterra, and has held a number of senior management positions in New Zealand and overseas. A Fellow of the Institute of Chartered Accountants, he is Deputy Chairman of the Accounting Standards Review Board.

Dr Richard Janes (Deputy Chair) is a professional company director with extensive experience in the primary sector and export–focused companies. He has more than 25 years' experience in international brand marketing. His current directorships include, Gallagher Holdings Ltd, Castlepoint Station Ltd, CentrePort Ltd, LEK Consulting Pty Ltd, Telarc, Crop and Food Research Ltd and Ocean Design Group Ltd.

Rakihia Tau is the current Chair of AgriQuality's Board having previously served as a director for three years prior to becoming Chair. He brings a wealth of business expertise including experience in various executive roles with Ngai Tahu.

Sam Robinson is the former Chairman of Richmond Ltd, a farmer and an experienced director. He brings a particular knowledge of the food and beverage sector to the AsureQuality Board. His current directorships include Centralines, Ports of Napier and PSIS Ltd. He is also a member of the Government's Growth and Innovation Advisory Board and was a member of the recently completed Food and Beverage Taskforce.

Tony Egan is the current Chief Executive of AgriQuality and previously headed up Affco Holdings. He has more than 14 years experience working in primary and export-focused industries.

Kelvan Smith is currently Chief Executive of ASURE and prior to that was National Operations Manager at ASURE for six years. His previous work experience includes 16 years as a meat inspector with MAF, a period as a PSA Organiser, and several senior management roles in the public sector.

Company Profiles

Profiles of Merging Companies

ASURE New Zealand

ASURE helps its customers deliver consumer confidence by providing simple and efficient solutions to complex food safety issues. The majority of ASURE's activity is either in meat processing facilities or on farm where ASURE delivers meat inspection and Tb testing services respectively.

ASURE provides a range of other related consumer confidence services including biosecurity work in the meat processing industry, development and delivery of training programmes, product and animal sampling services, on farm and in process audit and data collection.

ASURE has operated as a successful SOE since 1998 employing some 900 specialist meat inspectors and field staff at 80 sites throughout New Zealand. It works closely with the New Zealand Food Safety Authority, the Animal Health Board and the Ministry of Agriculture and Forestry.

AgriQuality

AgriQuality is New Zealand's leading provider of integrated food safety and biosecurity services to the country's agricultural and food industries. Customers range from some of New Zealand's largest corporates to small businesses, across Australasia.

A suite of international accreditations enables AgriQuality to audit, inspect, verify and certify food quality and management systems for food producers, processors and retailers from the farm to the supermarket shelf - from “farm to fork".

Particular services include environmental testing, monitoring and investigations; food testing to detect allergens, genetically modified organisms, pathogens, toxins, residues and nutritional composition; biosecurity services for the horticulture, forestry, dairy, meat, apiary and marine sectors and the manufacture of PPD tuberculin for international markets.

AgriQuality was established as a state-owned enterprise in 1998 and employs more than 850 scientists, technicians, analysts, inspectors and biosecurity professionals in 52 offices throughout New Zealand and in Australia.

ENDS

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