New Zealand produce group T&G Global has entered into a joint venture with M&G Vizzari, the largest asparagus supplier in Australia and fellow shareholder in asparagus exporter Delica Pty Ltd.
T&G Global owns 50% of Delica and the deal will see M&G Vizzari consolidating its shareholding in the exporter to hold the other 50% of shares. Delica Pty Ltd will buy Vizzarri Farms Pty Limited, a subsidiary of M&G Vizzarri. The transaction will also see the extension of long-term supply agreements for asparagus.
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The venture will make T&G "one of the leading asparagus traders in the southern hemisphere", the company said in a statement to the New Zealand Stock Exchange. The venture, to be called T&G Vizzarri Farms, will allow T&G to "improve its position in its dealings with the Australian food retail sector and its customers in South-East Asia", it added.
The venture is targeting annual revenues for its first year of around NZ$40m (US$26.4m), corresponding to a trading volume of over 5,000 tonnes.
Sarah McCormack, general manager for sales and marketing diversified products, at T&G said: "This joint venture with M&G Vizzarri is aligned with T&G’s strategic pillars of strengthening relationships with suppliers and customers and focusing on growth of key product categories. We look forward to the imminent start of the Australian asparagus season and to meeting the increasing demand for high quality asparagus from our global customers."
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