Landcorp sees full ownership of genetics business boosting returns

Landcorp manages the Crafar farms.

State-owned Landcorp Farming has taken full control of New Zealand's largest red meat genetics business - Hawkes Bay-based Focus Genetics - after acquiring the remaining 33 per cent of shares that it did not already own for an undisclosed sum.

The holding was bought from Rissington Breedline.

Focus Genetics is New Zealand's largest red meat genetics company by market share, selectively breeding rams, bulls and stags for meat production. The company has sheep breeding operations in Australia, South America and the United Kingdom.

Having one owner provided certainty for Focus Genetics' plans to invest more towards achieving greater rates of genetic improvement, said chief executive Gavin Foulsham.

"This deal means we can better leverage Landcorp's market presence to develop new partnerships and customers."

Focus Genetics had recently introduced a new programme to better identify bulls that would produce offspring with better "marbling" capabilities, a feature for which meat companies pay a premium.

The company had also signed an agreement with UK meat processor St Merryn, where UK farmers who provide Focus Genetics-sired lambs are paid a premium.

Under the terms of the settlement, Focus Genetics will remain a wholly independent company and will continue running breeding programmes for all commercial farmers.

Landcorp chief executive Steven Carden said that the acquisition was an important part of Landcorp's strategy to boost returns from its red meat and wool products.

"Growing the volume and value of our red meat portfolio is a core part of our strategy to transform New Zealand farming," Carden said.

"Our plan is that over time discerning customers will demand meat created from these genetics because of their taste profile."