Jeff Carson, of Whirinaki stands to comment when farmers met the operators of the NZ Life Science abattoir.
Jeff Carson, of Whirinaki stands to comment when farmers met the operators of the NZ Life Science abattoir.
Rain poured down outside, but it could not dampen the hopes for future prosperity blooming among farmers who met the operators of the NZ Life Science abattoir in a plastic marquee on the site outside Hikurangi.
Scott Massey, the Whangarei director of the new enterprise, which plans to process thehides and offal of slaughtered cattle to be sold for human medical use in the United States, suggested the business could be making up to $20 million in 10 years.
Addressing farmers at the Hikurangi abattoir are, from left, Randall McCoy, Chas Edwards and Scott Massey, Ministry for Primary Industries deputy director general Ben Dalton, and Jack Cunningham.
Another Life Science principal, American Randall McCoy, predicted sales of collagen and other medical products made from cattle hides and offal would become "bigger than milk powder".
Mr McCoy, a healthcare executive who helps companies introduce US Food and Drug Administration (FDA) regulated drug and medical products into the US and world market, said US pharmaceutical companies would bid for the products Life Science produce. They would be eager to source these medical products from New Zealand because of the country's freedom from foot and mouth, mad cow and other serious stock diseases.
American Randall McCoy says New Zealand has the best product in the world when processing animals to get products suitable for human medical use.
The pharmaceutical companies could seek long-term commitments to secure their supply, particularly when Life Science expanded from Hikurangi and increased production to include heart and blood products.
"Every single day thousands of these cow parts are being used around the world," Mr McCoy said. "We intend to make this work all across New Zealand. There is a New Zealand-wide market out there."
Health products would open the way for sale of meat from the closed herds meeting FDA requirements which would provide cattle for slaughter. Mr McCoy said people paid $35 a pound for tenderloin steak in the US and no one knew where the meat came from, while Life Science could provide NZ tenderloin for $9 a pound with a full history of the source of the meat.
Mr Massey said the Hikurangi abattoir was expected to be certified for exporting meat within six months.
Piopio farmer Ian Walsh, principal director of the Falkirk Scientific Foundation, said New Zealand was the most secure place in the world to process animal products for human medical use and the Life Science initiative was a "golden opportunity" for New Zealand farmers.
He uses ultrasound to assess animal collagen and will work as a geneticist with Life Science.
Jeff Carson, of Whananaki, and John Brosnahan, of Whakatane, questioned how the venture would fare in the turmoil of world markets and politics. They were assured prices for the medical products would not fluctuate like beef prices and Life Science would pay promptly for stock it procured.
Ministry for Primary Industries deputy director general Ben Dalton noted Mr Massey's big financial investment in the abattoir and said the project had to be supported as it would generate employment and was sustainable.
