Wagyu beef operation goes under owing about $10m
Thursday, 4 July 2024
New Zealand farmers will feel the pain after a wagyu cattle management business based in Canterbury collapsed owing about $10 million.
The business’s seven companies, run by Canterbury man Arato Tsujino, went into voluntary liquidation on June 28, appointing Brenton Hunt as liquidator.
Wagyu beef comes from specially bred cattle that traditionally spend the last part of their lives fed by grain in purpose-built barns. Wagyu cattle originated in Japan where the beef is revered for its marbling, aroma, texture and tenderness. Some New Zealand farming concerns raise Wagyu cattle exclusively on grass and sell in different markets to the grain-fed cattle.
Tsujino’s business started in 2015 and expanded after an association with SFJ Foods, a meat wholesaler. An abattoir was set up in 2021. Tsujino’s business managed about 30,000 Wagyu cattle, organising insemination, calf rearing, grazing and barn feeding.
Tsujino put the collapse down to the cost of setting up a supply chain and the withdrawal of SFJ Foods from the partnership. He was reluctant to mention major creditors but confirmed 50 farmers who provided services like grazing were owed money.
The business had been struggling for some time and he listed a number of problems leading up to the collapse - the Covid-19 lockdown, increased farming and construction costs, dealing with floods and drought, the rapid growth of wagyu cattle herds, delays in building the finishing barns and the costs of securing international and domestic markets.
“We invested heavily in a long-term vision to create a sustainable structure to support our farming partners and clients, and to also manage a large number of cattle. We suffered some financial setbacks and needed to cover these losses from our profit. It became a problem when the market crashed, particularly in China,” Tsujino said.
“Eventually, with the loss of our main partner, we were unable to continue our operation due to the high cost of our investments and many of our businesses being in their infant stages.
“It was with regret that we decided to liquidate the business.”
Customers would still be able to source wagyu New Zealand beef, he said.
Tsujino was born in Kobe, considered Wagyu's home turf, and did his high school education in New Zealand.
The companies in liquidation are Blackstone Meats, Whitehart Kurobuta, Wa Shoku, New Zealand Wagyu Co, 8-9 Construction, Natural Quality Foods and Rearing to Go.
Tsujino remains a director and shareholder of Black Origin Meat Processors (Gore) and Shiwase Kobe Cuisine. He still owns shares in Wagyu Breeding and Genetics.