Tegel Foods’ plans to build a new poultry farm in the New Zealand Northland have been turned down by the Overseas Investment Office (OIO).

The company had intended to purchase 200 hectares of former dairy land near Dargaville and build 32 poultry barns on the property. An estimated 9 million birds would have been raised per year at the facility, and about 34 people would have worked at the farm, according to a report from Radio New Zealand.

Company spokesman Liam Baldwin described the would-be poultry operation as efficient and environmentally friendly, but area residents had spoken out against the farm, expressing their worries about potential noise, odors, pollution and how the farm may impact their property values.

Tegel Foods, according to the WATTAgNet Top Poultry Companies Database, is New Zealand's largest poultry producer with 50 percent market share, as well as 90 percent for turkey. Strong exports also have driven recent growth. Tegel has breeder flocks, hatching, feed milling, slaughter, processing, further processing and cooking operations, all within New Zealand. In addition to its flagship brand Tegel, the company sells under the brands Rangitikei, Top Hat and Pure New Zealand Premium Chicken. Tegel’s Golden Coast Commercial division sells day-old broilers and layers. Export markets include Australia, the Pacific Islands, the Philippines, Hong Kong, the United Arab Emirates and Bahrain.


Meanwhile, a recent effort for Tegel Foods to be acquired is in the works.

Last week, it was announced that Bounty Holdings New Zealand’s offer to buy New Zealand poultry company Tegel Foods had been approved by the OIO. The offer was approved unconditionally under the Overseas Investment Act, according to a statement from Tegel Foods.

A wholly owned subsidiary of Philippines-based Bounty Fresh Foods, Bounty Holdings New Zealand offered to pay NZ$1.23 (US$0.82) per share in an unsolicited takeover offer proposed in April, and followed up with a full takeover offer at the end of May.