Crafar Farms, under MAF investigation, put in receivership by banks

Monday 5th October 2009

Crafar Farms, the dairy farm investment group under investigation for animal welfare lapses, was placed in receivership by banks owed close to $200 million.

New Zealand’s largest family owned dairy business was placed into the hands of receivers Michael Stiassny and Brendon Gibson from KordaMentha, according to a statement from the insolvency specialist. Its lenders are reportedly Westpac, Rabobank and PGG Wrightson Finance.

Agriculture Minister David Carter ordered a review of the 22 Crafar farms last week after footage of dying calves at a property at Benneydale was posted on YouTube. Carter said a wider group would also be assessing the properties to ensure there was adequate staffing and that workers weren’t distracted by worries over their next pay check.

“We will be working with MAF to ensure this investigation is completed as soon as possible,” Stiasnny said in a statement emailed to BusinessWire. “If any issues are identified then we will look to address them to ensure full compliance with responsible farming practices.”

Stiassny said the receivers will be “doing our best to ensure it is business as usual for the farms as we work to assess the situation.”

The business currently runs about 20,000 milking cows, and the farms carry about 10,000 of other stock, making it the biggest supplier to Fonterra. It has about 200 staff.

Allan Crafar previously told BusinessWire he felt “under siege from various people in authority” after the family firm was fined $90,000 for unlawful effluent discharges, the latest in the history of lapses.

He said the company had been in talks with a Chinese group about selling the properties, and that his family didn’t expect to be left with anything much after a sale, given the level of debt.

Businesswire.co.nz

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