Invercargill New Zealand November 21 2014: In a move that will see Prime Range Meats firmly hooked into its own secure
supply chain into China, Lianhua Trading Group is increasing its shareholding from 24.9% to 75%.
The move has been approved by the Overseas Investment Office (OIO) - approval required because part of Prime Range
Meats’ (PRM) assets include 99.1 hectares of land used for holding stock for the plant, some of which is sensitive
wetlands and bush.
PRM managing director Tony Forde, fellow shareholder/director Ian (Inky) Tulloch and associated parties have sold down
after diluting their shareholdings earlier this year, following a competitive sales process, through the issuing of new
shares. This introduced new capital into PRM then and this new transaction will also see capital expenditure on PRM’s
plant of several million more in coming months.
Mr Forde says the move could not have come at a more perfect time for PRM, for the wider Invercargill community and
economy – and for him and Inky.
“While we are not ready to hang up our boots yet, Inky and I are not getting any younger and the future of Prime Range
Meats really needed to be secured,” Mr Forde says. “This deal means the plant will get the capital it needs to be not
only sustainable, but expand over the next five years. That will be good for the workers, our loyal farmer suppliers and
the local economy. The number of jobs, for example, is expected to increase from the current 120 to around 170 or more
and there is significant capital expenditure planned for in and around the plant.
“This will be a real boost to all Southland and Otago farmers, who now have one solid option that stands out from the
turmoil about the future of the red meat sector. PRM is ready to talk to interested farmers about what we can offer now
and to show them the future potential of having long term supply arrangements for quality stock.
“I would also like to assure local-trade clients that our long standing relationship is important to us and will
continue under the new ownership.”
Lianhua Trading Group executive director Mark Ma says the group was formed at the start of this year to invest in the
beef and sheep meat industry in New Zealand. Mr Ma, a permanent resident who has lived in Auckland since 1999, says he
has been charged with finding the best ways to secure further beef and sheep meat for the supply chain in China.
With the assistance of professional agriculture director and advisor to Lianhua Rick Braddock, who has also been
appointed a PRM director, the team decided an excellent first way was to invest in an independent meat processor and
exporter.
“That way we are able to ensure we get the cuts that are suitable for the Chinese market, which are often different to
the traditional cuts that New Zealand processors have supplied to Europe and the United States,” Mr Ma says. “We believe
New Zealand farmers have the knowledge and skills best suited to producing here the high quality animals for our needs.
We can add the technical expertise to get the right product for China.”
Lianhua Trading’s parent company is Shenzen Lianhua Enterprise Development Co Ltd. It has a retail network, which has
customers including the Haidilao Hot Pot Chain and McDonalds.
Shenzen Lianhua’s food industry division has been responsible for importing thousands of tonnes of beef and sheep meat
in to China since the 1990s from places like Brazil, Uruguay, Argentina and Australia, as well as New Zealand. Last year
it procured the equivalent of nearly NZ$500 million of red meat into China.
Its experienced team is highly experienced at handling the requirements needed to meet China’s Inspection and Quarantine
Services (CIQ) specifications for food arriving at China’s borders. Mr Ma says Prime Range Meats’ gained CIQ clearance
earlier this year for its beef and sheep meat exports.
Together with Shenzen Lianhua’s principal Mr Chang Hao, Mr Ma and the PRM team plan will meet staff, farmers and
business people later next week. With both Mr Ma and Mr Chang Hao have backgrounds in farming and Mr Ma says it will be
great to get back out on the land again.
As part of PRM’s future- proofing, Mr Forde has also announced a restructure of the company’s senior management: Plant
manager Paul Hamilton will become PRM’s general manager. He is a highly experienced meat industry manager with 30 years’
experience in management roles. This includes 20 years through the development of PRM. Trevor Hourston will move into
the role of plant manager.
Ends