ABB Grain to acquire New Zealand's NRM

Australia's ABB Grain Ltd. announced the purchase of New Zealand stockfeed manufacturer NRM for A$31.7 million (US$20.68 million) - part of a strategy to diversify into regions with more reliable climatic conditions.

NRM imports more than 100,000 tonnes of grain a year for processing and with this additional tonnage, existing businesses and relationships, ABB will be managing a supply chain for more than 750,000 tonnes of grain and other bulk commodity imports a year, Managing Director Michael Iwaniw said in a statement.

Changing land usage means New Zealand will become increasingly reliant on imports to support domestic dairy, pig and chicken compound and intensive feed markets, he said.

"ABB's ability to reduce supply chain costs through the efficient use of an integrated value chain will provide real benefits to New Zealand's end users, while also providing Australian producers with a dedicated market for their grain," he added.

US$1 = A$1.53 (Feb 25)