AFFCO Holdings

Last updated

AFFCO Holdings Limited
FormerlyAuckland Farmers' Freezing Co-Operative [1]
Company type Subsidiary
Industry Meat Processing
Tannery
Founded1904 (1904) in Auckland, New Zealand
Headquarters
Hamilton City
,
New Zealand
Key people
Nigel Stevens, CFO [2]
Products Beef
Veal
Pelts
Lamb
RevenueIncrease2.svg $968 million NZD
Number of employees
2800+
Parent Talley's Group
Divisions Affco USA, Inc
Affco Europe Ltd [3]
Website www.affco.co.nz

AFFCO Holdings Limited, commonly referred to as AFFCO or "Auckland Farmers Freezing Company", is New Zealand's fourth largest meat processor. AFFCO has been in operations since 1904. It has been wholly owned by Talley's Group since 2010 and it is currently one of the few remaining Talley's owned companies to employ unionised workers at their plants. AFFCO has twelve plants in New Zealand.

Contents

History

In 2002 AFFCO acquired all shares of shareholders that held 1,000 shares or less. This buyback accounted for 0.87% of all shares listed at the time and effectively removed over 7,000 shareholders from its share register. [4]

In 2004 AFFCO acquired New Zealand's largest processor of Bobby Calves Dairy Meats New Zealand Ltd for $42.2 million. [5]

In 2007, Affco through its subsidiary Dairy Trust acquired 55.5% Waikato-based dairy exporter Open Country Cheese Limited for an undisclosed amount. [6] In December 2013, AFFCO's shareholding was raised to 70.5% after Talleys; through AFFCO, purchased 14.99% from Olam International. [7]

Talley's

Talley's takeover began in 2001 after the fishery acquired a 10% stake on top of its existing 1.3% stake for $6 million (NZD). [8]

In 2003, after multiple bids, Talley's successfully raised its shareholding to 37% after purchasing 11% from Hugh Green Investments. [9]

In March 2006, Talley's made another bid to acquire more shares in AFFCO taking their stake to 50.01% from its then 40% stake. It was also reported that Talley's has been constantly been acquiring shares in AFFCO through both on-market and off-market acquisitions. [10] Later in the year Talley's closed its bid receiving an 18% stake from several minor shareholders taking its stake to just over 58%. [11]

In 2010 it was reported that Talley's had come to an agreement to purchase John Spencer's stake in AFFCO by purchasing his shares held by Toocooya Nominees increasing its shareholding to 76.2% for $43.9 million. [12] Later in the year Talley's launched a full-scale takeover of AFFCO. [13]

By October 2010, Talley's had acquired 90.474% of all AFFCO shares forcing a compulsory acquisition to occur giving Talley's 100% of all AFFCO shares. AFFCO was subsequently de-listed from the NZX. [14]

Controversy

In 2006 AFFCO fired multiple workers under suspicion of a theft ring was operating in its Wairoa plant. In 2007 an Employment Relations Authority court found in favor of the fired workers for unjustified dismissal and awarded upwards of $60,000 combined as compensation and unpaid wages. [15]

In 2014 AFFCO was fined over $30,000 after firing a worker for refusing to work on the Sabbath as it was against his religion. The worker took the case to the Human Rights Review Tribunal as an infringement on his human right to religion. [16]

Strikes

In 2012 a strike occurred throughout all AFFCO Meatworks plants after AFFCO locked out over 750 union workers. [17] After weeks of protest the strike found support in multiple organisations, including the Mana Party [18] and the New Zealand Labour Party. [19] The strike was called off after AFFCO and the New Zealand Meatworkers came to an agreement after 12 weeks of striking. [20]

In June 2015 another strike broke out after lockouts started occurring once again after a contractual disagreement between New Zealand Meatworkers and AFFCO regarding individual contracts and seasonal workers. [21] In early-2016 the Employment Court ruled that AFFCO had illegally locked out workers and ruled that the company must allow workers back to work. [22]

In March 2016 more strikes occurred after AFFCO announced staff layoffs. [23]

Unsafe working conditions

In 2008 AFFCO received fines amounting to $75,000 after failing to ensure a safe working environment after a worker had his finger cut off during work. [24]

In 2010 AFFCO was fined up to $53,000 after failing to ensure a safe working environment after a workers leg was broken after being trapped in a machine that did not have appropriate safety gear. [25]

In July 2012 AFFCO was fined over $62,000 after failing to ensure a safe working environment after a worker fell 7 metres (23 ft) into a carton well area. Preventative measures taken after the initial probability of accident was noticed, including installing a gate at the top of the well-shaft and providing employees with a fall arrest harness, were not sufficient to prevent the fall from happening. [26]

In February 2015 AFFCO was fined $5,000 after the Employment Relations Authority found that a former worker was unjustifiably dismissed after launching complaints of bullying in the workplace. [27]

Meat hook incident

In 2014 it was reported that a male at the Rangiuru site was impaled in the cheek during work. [28] In June 2015 AFFCO was charged by Worksafe New Zealand under the Health and Safety Employment Act. [29] After an investigation it was found that AFFCO had not followed company safety regulations and was found guilty of breaking the Health and Safety Employment Act. [30] After a lengthy trial AFFCO was fined $30,000 for failing to uphold the Health and Safety Employment Act. They were also fined a further $25,000 in reparation fees for the impaled worker. [31]

Sewage discharge

Affco NZ Ltd processing plant at Moerewa and Wairoa are a major source of trade wastewater in the form of e.coli contamination to freshwater streams. [32]

Related Research Articles

<span class="mw-page-title-main">Vestey Holdings</span> Holding company based in Surrey, United Kingdom

Vestey Holdings, formerly Vestey Group and previously also known as Vestey Brothers, is a privately owned UK group of companies comprising an international business focused mainly on food products and services. The company has owned vast holdings overseas, mainly in South America and Australia, and continues to own some.

<span class="mw-page-title-main">Fonterra</span> New Zealand multinational dairy co-operative

Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ $22 billion, making it New Zealand's largest company. It is the sixth-largest dairy company in the world as of 2022, as well as the largest in the Southern Hemisphere.

Tranz Rail, formally Tranz Rail Holdings Limited, was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003.

<span class="mw-page-title-main">Wairoa</span> Town in Hawkes Bay, New Zealand

Wairoa is the largest town in the Wairoa District and the northernmost town in the Hawke's Bay region of New Zealand's North Island. It is located on the northern shore of Hawke Bay at the mouth of the Wairoa River and to the west of Māhia Peninsula. It is 118 kilometres (73 mi) northeast of Napier, and 92 kilometres (57 mi) southwest of Gisborne, on State Highway 2. It is the nearest town to the Te Urewera protected area and former national park, which is accessible from Wairoa via State Highway 38. It is one of three towns in New Zealand where Māori outnumber other ethnicities, with 62.29% of the population identifying as Māori.

<span class="mw-page-title-main">Dave Hereora</span> New Zealand politician (1956–2014)

David Murray Hereora was a New Zealand trade unionist and politician. He was a list MP for the Labour Party from 2002 to 2008.

<span class="mw-page-title-main">Australasian Meat Industry Employees Union</span> Australian trade union

The Australasian Meat Industry Employees Union is an Australian trade union representing workers in the meat industry including in abattoirs, butchers, and smallgoods manufacturers.

AsureQuality Limited is a State-Owned Enterprise (SOE) fully owned by the government of New Zealand. The company's core business is food quality assurance with its services including certification, inspection, testing, and training. AsureQuality has over 1700 staff at over 100 locations throughout New Zealand. AsureQuality also has a joint venture partner, Bureau Veritas.. Bureau Veritas and AsureQuality have two joint ventures, BVAQ Australia and BVAQ SouthEast Asia.

The Todd Corporation is a large private New Zealand company with a value of $4.3 billion, owned and controlled by the Todd family and headquartered in Wellington, New Zealand. The corporation is currently led by board chair, Nick Olson, and group chief executive officer, Evan Davies. The corporation employs 800 individuals at 10 locations in New Zealand, Australia, and Canada including seven on the executive team. The board of directors has seven members.

<span class="mw-page-title-main">Virgin Australia Holdings</span> Holding company for Virgin in Australia

Virgin Australia Holdings Pty Limited is the holding company that owns and operates Virgin Australia and Virgin Australia Regional Airlines. It previously operated Pacific Blue Airlines, Tigerair Australia and joint-venture airline Polynesian Blue which were absorbed into Virgin Australia in December 2011. Its head office is located in South Bank, Brisbane. After being placed in administration in April 2020, it was purchased by Bain Capital in August 2020.

<span class="mw-page-title-main">Contact Energy</span> New Zealand electricity generating and retailing company

Contact Energy Limited is a New Zealand electricity generator, a wholesaler of natural gas, and a retailer of electricity, natural gas, broadband and LPG.

<span class="mw-page-title-main">Ross River Meatworks Chimney</span> Historic site in Queensland, Australia

The Ross River Meatworks Chimney is a heritage-listed abattoir at Stuart Drive, Idalia, City of Townsville, Queensland, Australia. It is the 11th tallest structure in Townsville. It was built as part of the Ross River Meatworks in 1891 William McCallum Park and is now a major landmark as part of Fairfield Waters and part of Lancinis Springbank urban village. It was listed on the Queensland Heritage Register on 14 August 2009.

<span class="mw-page-title-main">Z Energy</span> New Zealand fuel station chain owned by Australian Ampol

Z Energy is a New Zealand fuel distributor with branded service stations. It owns some of the former assets of Shell New Zealand and Chevron New Zealand. It has been a subsidiary of Australian petroleum company Ampol since May 2022.

<span class="mw-page-title-main">Michael Wood (New Zealand politician)</span> New Zealand politician

Michael Philip Wood is a New Zealand Labour Party politician and a former member of the New Zealand House of Representatives, representing Mount Roskill between 2016 and 2023.

Talley's Group Limited is a privately owned, New Zealand–based agribusiness company that provides seafood, vegetable and dairy products. Talley's was established in 1936 in Motueka by Ivan Peter Talijancich as a manufacturer of seafood, and has since grown into one of the largest agribusiness companies in New Zealand.

Bright Food is a Chinese multinational food and beverage manufacturing company headquartered in Shanghai. It is the second-largest Chinese food manufacturing company measured by 2011 revenues. The company is wholly owned by the Shanghai Municipal People's Government via Shanghai Municipal Investment Group and another sister company.

<span class="mw-page-title-main">Steel & Tube</span> New Zealand iron and steel company

Steel & Tube Holdings Limited is a New Zealand-listed company that was established in 1953 with the merger of Stewarts & Lloyds of New Zealand, The Iron & Steel Company of New Zealand and McLean & Todd to form a steel company with a national reach.

2 Cheap Cars is a used car dealership group in New Zealand. It was founded in 2011 by Eugene Williams and Yusuke Sena. The company specialise in selling Japanese imported cars in New Zealand.

Ngāi Tahu Holdings Corporation Limited is owned by the Ngāi Tahu iwi of the South Island of the New Zealand. Its main interests are in tourism, fisheries, property and forestry and it is among the wealthiest iwi in New Zealand. Ngāi Tahu annually contributes more than $200 million to the South Island economy.

Horotiu is a small township on the west bank of the Waikato River in the Waikato District of New Zealand. It is on the Waikato Plains 13 km (8.1 mi) north of Hamilton and 5 km (3.1 mi) south of Ngāruawāhia. From early in the 20th century it developed around a freezing works and other industries.

<span class="mw-page-title-main">ANZCO Foods</span> New Zealand meat producer

ANZCO Foods or simply ANZCO is a New Zealand meat producer fully owned by the Japanese company Itoham Foods, which in turn is part of Itoham Yonekyu Holdings. In 2016, ANZCO Foods was New Zealand's fifth-largest exporter, with a turnover of NZ$1.5b, and 3,000 employees.

References

  1. ↑ "Talley's boosts Affco holding". 21 August 2010. Retrieved 14 July 2016– via New Zealand Herald.
  2. ↑ "Contact Us | Affco New Zealand".
  3. ↑ "Archived copy". Archived from the original on 13 May 2016. Retrieved 20 April 2016.{{cite web}}: CS1 maint: archived copy as title (link)
  4. ↑ "Affco mops up small shareholdings". 11 March 2002. Retrieved 14 July 2016– via New Zealand Herald.
  5. ↑ "Affco to pay out $44.2m for bobby calf business". 28 November 2004. Retrieved 14 July 2016– via New Zealand Herald.
  6. ↑ Burgess, Malcolm (2 August 2007). "Dairy Trust confirms it has Open Country" . Retrieved 14 July 2016– via New Zealand Herald.
  7. ↑ "Talley's to lift stake in Open Country". 24 December 2013. Retrieved 14 July 2016– via New Zealand Herald.
  8. ↑ Stevenson, Philippa (4 October 2001). "Fisherman Talley's takes bigger stake in meat" . Retrieved 14 July 2016– via New Zealand Herald.
  9. ↑ "Talley's raises Affco holding to 37pc". 30 July 2003. Retrieved 14 July 2016– via New Zealand Herald.
  10. ↑ "Talleys bids for control of Affco". 13 March 2006. Retrieved 14 July 2016– via New Zealand Herald.
  11. ↑ Ward, Stephen (13 June 2006). "Success shows Affco offer 'fair'" . Retrieved 14 July 2016– via New Zealand Herald.
  12. ↑ "Talley's bid for meat processor Affco". 14 June 2010. Retrieved 14 July 2016– via New Zealand Herald.
  13. ↑ "Talley's makes full offer for Affco". 21 July 2010. Retrieved 14 July 2016– via New Zealand Herald.
  14. ↑ "Talley's takes charge". 7 October 2010. Retrieved 14 July 2016– via New Zealand Herald.
  15. ↑ Woulfe, Catherine (29 July 2007). "Fired meatworker picks up $46,000 stake" . Retrieved 14 July 2016– via New Zealand Herald.
  16. ↑ "Meat worker sacked for refusing to work on Sabbath". 27 February 2014. Retrieved 14 July 2016– via New Zealand Herald.
  17. ↑ O'SULLIVAN, PATRICK (29 February 2012). "AFFCO workers vote to strike" . Retrieved 14 July 2016– via New Zealand Herald.
  18. ↑ APNZ (10 May 2012). "Harawira calls for Talley ban" . Retrieved 14 July 2016– via New Zealand Herald.
  19. ↑ "Affco upset by Shearer's picket visit". 17 May 2012. Retrieved 14 July 2016– via New Zealand Herald.
  20. ↑ "AFFCO meatworkers dispute settled". 22 May 2012. Retrieved 14 July 2016– via New Zealand Herald.
  21. ↑ Nicholas, Jill (17 June 2015). "Mediation ordered in meat works dispute" . Retrieved 14 July 2016– via New Zealand Herald.
  22. ↑ "Affco must allow workers to return to day shifts, Employment Court rules". 12 February 2016. Retrieved 14 July 2016– via New Zealand Herald.
  23. ↑ "Workers protest Affco staff layoffs". 9 March 2016. Retrieved 14 July 2016– via New Zealand Herald.
  24. ↑ LOBBAN, NICHOLA (17 April 2008). "Affco fined $75,000 for industrial accident" . Retrieved 14 July 2016– via New Zealand Herald.
  25. ↑ Hunter, Michele (16 September 2010). "Firm fined $44k after worker breaks leg" . Retrieved 14 July 2016– via New Zealand Herald.
  26. ↑ "Affco fined $60k after worker's fall". 24 July 2012. Retrieved 14 July 2016– via New Zealand Herald.
  27. ↑ "Meat worker bullied at 'the guts table'". 25 February 2015. Retrieved 14 July 2016– via New Zealand Herald.
  28. ↑ "Man impaled at AFFCO". 19 August 2014. Retrieved 14 July 2016– via New Zealand Herald.
  29. ↑ "Charge over hook in worker's head". 19 June 2015. Retrieved 14 July 2016– via New Zealand Herald.
  30. ↑ "Affco meatworking plant failed in safety after cleaner impaled". 4 March 2016. Retrieved 14 July 2016– via New Zealand Herald.
  31. ↑ "Affco meatworking plant to pay $55,000 after worker hooked in head". 20 April 2016. Retrieved 14 July 2016– via New Zealand Herald.
  32. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 31 March 2018. Retrieved 30 March 2018.{{cite web}}: CS1 maint: archived copy as title (link)
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.