An aerial view of Addis Ababa, the capital of Ethiopia, where Dairy Solutionz said it had delays relating to a contract with agriculture officials. Photo / Getty Images
An aerial view of Addis Ababa, the capital of Ethiopia, where Dairy Solutionz said it had delays relating to a contract with agriculture officials. Photo / Getty Images
A New Zealand dairy consultancy has blamed an Ethiopian government ministry as one of the reasons for its failure and the appointment of liquidators.
Colin Sanderson and Boris van Delden of McDonald Vague are now in charge of Dairy Solutionz (NZ), Thermo Regulatory Genetics and Tropical Dairy Group, all inliquidation.
“The directors have attributed the failure of the group of companies to a number of factors outside their control with the main issue being delays from a contract with the Ethiopian Ministry of Agriculture with last-minute changes rendering the project uneconomic,” the McDonald Vague accountants wrote in their initial report just out.
No assets are available to the liquidators, who estimated Dairy Solutionz would have a $1.29 million deficiency for unsecured creditors although $1.06m is on the statement of affairs as inter-company advances.
Preferential creditors want $98,000, trade creditors want $85,000 and an ex-employee has an unsecured claim of $44,000.
Creditors are named as the BNZ, Inland Revenue, NZ Transport Agency, Spark Digital, Terminus Technologies, Nelson Medina, Chartwell Investments and 5INFIVE Ltd of Hamilton.
Chartwell was listed as a first-ranking general security holder.
Dairy Solutionz directors are Paulus Henricus Bardoul of Ōhaupō, David John Heald of Hamilton, Colin Johsph Ronald Groves of Ohaupo and Timothy Mark Heeley of Hamilton.
The company is owned by Tropical Dairy Group of Ōhaupō, Waikato, whose statement of affairs is the same as that of Dairy Solutionz.
In 2021, Tropical Dairy Group announced a capital raise of $3m.
“Focused on developing heat-tolerant cattle in tropical climates, TDG’s genetics are sold into markets throughout Asia, the USA and South America, improving animal welfare and helping the world’s hottest communities provide greater food and protein security,” the statement three years ago said.
Heat-tolerant zebu cattle beasts in a stable. Photo / Getty Images
Tim Heeley, the chairman, said it was a great opportunity for New Zealanders “to invest in a world-first genetic solution, originating from the Waikato”.
Tropical Dairy Group was a technology-driven, growth business, Heeley said then, and a pioneering genetics company.
“We are predicting good interest from dairy farmers as well as the wider New Zealand ag community. The investment should also appeal to people looking to fund solutions to global food insecurity issues linked to climate change.”
The Ōhaupō-based company had started breeding tropical dairy genetics in 2008, with 14 private investors, many of them New Zealand dairy farmers.
The company had bred the world’s first team of Jersey bulls that all carry the dominant slick gene, meaning daughters of these bulls are certain to exhibit heat-tolerant traits.
Cows with the slick gene cope better in tropical climates, mitigating heat stress and improving milk production for countries with some of the world’s greatest deficits of protein, Tropical Dairy said.
Cows with that gene have been shown to have lower body temperatures and higher milk production compared to non-slick cattle.
Wholesale investors were in 2021 invited to put in $10,000.
Now, the McDonald Vague liquidators say Tropical Dairy’s shareholders put the company and its associates into liquidation.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
