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Quality is Focus of New Facility

by 5m Editor
1 October 2010, at 9:47a.m.

NEW ZEALAND - A recently-opened processing facility is focusing on high-quality poultry products.

A new production facility in North Island is the latest player in the poultry market, with strategies to deliver quality products and services, and plans to enter the burgeoning international markets.

Indian News Link reports that Waikato Farms Limited (WFL) was established in December last year. Based in Te Aroha in the Waikato region, it will soon be the cornerstone of the Millennium Group, one of the fastest growing companies of its type in New Zealand, with diverse activities.

The Group acquired a primary processing plant with existing machinery.

But the one-and-a-half acre (about 65,475 square foot) complex has undergone extension renovation, with an additional investment of NZ$1.5 million. With Resource Consent and Food Safety New Zealand approval in place, the Company is well positioned to play a major role in the industry.

With a complement of 18 full-time employees, the factory has a daily production capacity of eight tons.

Managing Director, Saji Philips, said the new company aimed to meet the demands of the growing poultry market in New Zealand and overseas.

He said: "WFL will strengthen Millennium Foods (which is a part of the Group) as a distribution company by achieving vertical integration in terms of consistent supply. It would also help in the expansion of our niche market."

According to industry sources, New Zealand's poultry sector is oligopolistic, with three major players exercising control.

WFL is already supplying the generic product, with live birds obtained from regular suppliers and plans to launch its own brand by the end of the year or early next year.

Mr Philips did not disclose the details of the brand but said it would have advantage of quality and price and cater to the growing free-range segment of the market.

He said: "Our export strategy is to utilise the existing and emerging potential in several overseas markets including China, India and the Middle East. Apart from New Zealand, our products are being exported to New Caledonia."

The Group's Marketing Director and Director of Exports, Lawrence Pereira, said WFL will transform the distribution arm Millennium Foods Limited.

Mr Pereira explained: "Today's poultry meat is a significant segment of a sophisticated market with many variations in marketing strategies, especially in the value added sector.

"Millennium Group is proactive to be a part of this dynamic and interesting market in New Zealand. Internationally, poultry meat consumption has consistently increased in recent years but is constantly evolving. The domestic market mirrors almost exactly worldwide trends."

Mr Philips told Indian News Link that the Group was working with a number of suppliers.

"We would like to consolidate with a key partner and establish a strategic alliance, which will complement the Company’s growth strategy," he said.

Future plans of WFL include aligning with poultry farms, a robust poultry-breeding programme and increasing its share in the export market.

Mr Philips said recession and downturn appear as economic cycles and hence should not be considered as period of rest, reports Indian News Link.

He said: "Inert market conditions are a challenge to perform better; after all, it is only toughness that conditions our actions and performance."