New Zealand interests would be involved with investment at governance level and as a significant minority shareholder. The bed of the Shag River would also be offered to the Crown for nil consideration.
A successful application seeking land-use consent from the Waitaki District Council for the intensive farming operation by PIC NZ - the largest pig breeding company in New Zealand - said it was responding to increasing consumer demand for free farmed pigs.
Traditionally, outdoor pigs had been farmed in the Canterbury region but with the growth and development of intensive irrigation schemes and dairy farming, that had put huge pressure on the economics of outdoor pig production in that region.
The applicant spent about a year trying to identify a suitable location that ''ticks all the boxes'' and the Palmerston property was identified as having the right climate, aspect and soil type to effectively and efficiently run pigs outdoors.
It was proposed to develop the property as a sustainable and environmental ''showpiece'' free range pig farm.
It was proposed to run about 400 breeding sows and their progeny over the property using portable shelters and farrowing huts to house the animals.
The application said pigs farmed under such conditions produced very little odour.
The property was adjoined on its northern boundary by a free range hen farm, which was consented for about 65,000 birds.
