Shares in New Zealand’s largest poultry producer, Tegel Group, have fallen after profits dropped due to lower exports to Australia, rising costs and an earthquake.
The group announced a net profit of $NZ14.8m (€8.58m) in 6 months to the end of October, which represented a fall of 2.3% on the same period last year.
Phil Hand, Tegel Group chief executive, said the company was keen to move into the Australian retail market – following a change in strategy towards Australia – as well as maintaining its market leader role in New Zealand despite pricing challenges.
“It has been particularly satisfying to see Tegel products achieving such significant national distribution in Australian retail.
“We are continuing to invest in our brand, and at the same time accelerating our innovation and new product development programme, which is resulting in more higher value product in market, particularly free-range products and value added meal solutions.”
New Zealand’s egg sector last month saw the sale of Dunedin-based Mainland Poultry to an Australian investment fund for a price exceeding $NZ100m (€58.1m).
The new owner intends to invest in Mainland Poultry to help make the transition from conventional cages earlier than required by law and to grow the business.