Saturday, March 30, 2024

Chucks empire lays golden egg

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For many in business 1987 was a bad year but for Max Bryant it was the beginning of something special.
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Under pressure from the bank over a kiwifruit development that hadn’t panned out Bryant decided to build a chicken shed at home in Halcombe, the small Manawatu settlement where he lived.

Thirty years later he has sold the company, Proten, for $400 million.

Bryant estimates about $60m of that will stay with shareholders in the district, who were ground-floor investors.

He admits Proten has come a long way since that first shed was built out the back.

“The backbone of Proten really got started when Tegel shut the Te Horo plant and paid the chicken growers not to grow chickens for five years in a lump sum, after a lot of negotiation,” he said.

“That allowed the growers to build sheds in Auckland and New Plymouth. We also bought an existing farm at Kumeu. We finished up being the largest grower in New Zealand, being 33% of Tegel’s production.”

Australia was the next step after Bryant saw the opportunities there while on holiday. But there was a false start.

“We bought 5000 acres in the Hunter area for $3m and proceeded to apply for consent to build 40 sheds. 

“All hell broke loose then as the local growers campaigned against us as they saw us as a threat. 

“We did win in the end and got consent. 

“We also purchased 24 sheds at this time from Bartters in Griffith. This was a good buy and very high yielding. 

“Bartter then decided they did not want as many sheds in the Hunter Valley so this made our 40 shed project uneconomical so we sold the 5000 acres for $11m. 

“This allowed us to buy and build 61 sheds for Baiada in Tamworth.”

But Bryant persevered and ended up with 11% of Australia’s production total and 300 sheds.

“And then we sold it.

“Our shareholders have done very well. 

“They’ve been paid a monthly dividend all the way through and about $60m has come back to the Manawatu area. 

“The bulk of the shareholders are from around this area and they’ve got a lot of money in their pocket and they’re very happy.”

Most of those smiling shareholders were ground-floor investors and have been in the company since its beginnings. 

Bryant said chicken farming is not quite what he saw himself doing with his life but it’s been good to him.

“You get paid every month and it works well. 

“But it is getting harder and harder now. 

“With interest rates being so low we’ve got more competition and it is driving returns down.”

Bryant will keep busy in his semi-retirement. He sits on the board of a farm in the district and will look after the family investments.

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