Financing adapted to the challenges | Otago Daily Times News Online

Silver Fern Farms has secured one of New Zealand’s largest sustainability-related working capital financing facilities.

At $320 million, the sustainability-related funding had been tailored to the challenges facing the red meat industry and would allow Silver Fern Farms to grow while adhering to the company’s transformative sustainability agenda, said the company said in a statement.

Under the sustainability-related funding, Silver Fern Farms would receive financial incentives for achieving pre-agreed and pre-defined sustainability goals, including:

Adoption of the comprehensive New Zealand Farm Assurance Program Plus (NZFAP+) program by Silver Fern Farms suppliers.

Reduced processing emissions in line with the company’s Science Based Target Initiative (SBTi) goal of a 42% reduction in Scope 1 and 2 greenhouse gas emissions by 2030 compared to a reference year of 2020.

Reduction in total landfill waste (including organic waste) from treatment sites.

Reduction of water used at treatment sites.

Improved environmental monitoring and reporting.

Chief executive Simon Limmer said the company is committed to leading change in the food system and supporting a just transition to a low-carbon economy.

“Our commitment and monitoring of sustainability issues is a key way to ensure we are doing the right thing for our customers, who increasingly want their red meat to be produced and processed sustainably.

“A sustainability-related funding of this size is an important milestone for Silver Fern Farms and underscores our commitment to responding to the rise of conscious consumers and creating new forms of value for farmers.

“The facilities-related goals will hold us to account as we accelerate toward a nature-friendly business model that encourages low-emission, biodiverse and regenerative farming practices,” he said.

The sustainability-related financing was provided by a syndicate of lenders including ANZ, Bank of China, BNZ, Citibank and Rabobank.

Rabobank NZ chief executive Todd Charteris said the new facility was one of the first of its kind for New Zealand’s red meat processing industry.

Last month, Silver Fern Farms launched its USDA-approved 100% grass-fed Net Carbon Zero By Nature Angus Beef at an event in New York City attended by Prime Minister Jacinda Ardern.

Ms. Ardern was joined by the visiting New Zealand trade mission, Silver Fern Farms US customers and market partners, and national media from New York and the US.

The event was to celebrate the successful introduction of beef to the United States; it was already sold in supermarkets in the New York tri-state area, the Midwest and California.

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