T&G Global (T&G) is mulling over the potential sale of its food processing subsidiary ENZAFoods New Zealand.
The company instead wants to focus on its core business of growing, sourcing, packing, marketing, selling and transporting fresh provide to customers in its native New Zealand and globally.
Therefore, T&G has received the operations of T&G Foods and has concluded that the fruit processing business is “non-core”.
With that in mind, T&G determined that the business should “be either sold, rationalised or closed”.
T&G Foods has the capacity to process up to 200,000 metric tonnes of apples and other fruit at its two manufacturing sites – in Hastings and Nelson respectively.
The business processes apples into apple juice and has also diversified into the production of higher margin fruit ingredient products including diced apple for the food services industry, apple sauce in bulk and small format pouches for retail consumers.
T&G anticipates that the impact of the sale to the group would be around NZ$14 million.
However, this figure would be largely offset by the NZ$14 million gained from the Group’s investment in US joint venture Grandview Brokerage.
Alastair Hulbert, CEO of T&G Global, said: “Despite the best efforts of T&G Foods’ management and staff, the business has struggled to counter the current impact of the significant decline in the volume of fruit for processing in New Zealand and the continued worldwide decline in the commodity price of apple juice concentrate.”