United States-Poultry Merger.

UNITED STATES-POULTRY POULTRY MERGER.On January 28, ABC Holding Group LLC, USA and Hendrix Genetics Ltd, Canada, on behalf of ISA North America have signed a consultancy agreement with the objective to improve ISA’s market position in the US and Japan.

ABC-Holding Group LLC is a newly established company owned by Andy Hansen, Bob Kreider and Chris Hansen. ABC will focus on the further development of ISA’s business in the US and Japan, as an addition to the already existing sales channels.

Andy Hansen of ABC Holding Group: "The egg industry in the US and Japan needs easy access to the diverse genetics that ISA provides. Several large egg producers and hatcheries in both countries have approached us to make this happen. We have talked with ISA the past few months and are impressed with the quality of their products, people and organisation. Together we will deliver what the egg industry needs".

Servé Hermans, Managing Director of ISA: "The ABC-group represents a synergy of talents, abilities, education and experience, all combined with a passion to succeed. Their knowledge of both markets and the good contacts they have in the egg industry in the US and Japan makes me feel very confident that we will be able to create a balance in the supply of layer chicks to the egg industry in both countries.

"The most difficult of the last 30 years" is how New Zealand Pork board chairman Chris Trengrove describes 2008 in the organisations recently released Annual Report.

"Biofuels, a commodity boom, drought, losses, exits, grain prices, and recession all combined to make what many commentators have described as the perfect storm," says Trengrove.

During the year grain prices reached crippling levels, meaning for a period that producers were losing up to $50 per pig and resultantly exits began. However by the end of the year, the schedule was pushing $4.00/kg, the exchange rate had become favourable, pork imports had dropped significantly and spot grain prices had stabilised allowing producers to now make modest margins.

Trengrove notes that the downturn has had an impact with 10% plus production capacity leaving the industry and therefore expects production to be down for the 2008/09 year.