I think it is a great strategy as it enhance the brand and 'Buy Tasmanian' sources.
The announcement is:
TasFoods subsidiary secures 100% of its Feed Wheat supply from Tasmania
TasFoods Ltd announces that subsidiary company Nichols Poultry Pty Ltd has signed wheat supply agreements for 2017 with TAP AgriCo. This will result in Nichols Poultry being able to guarantee that 100% of the feed wheat processed in its feed mill is sourced from Tasmania.
This commitment supports the TasFoods strategy of building a stable of premium food brands sourced from Tasmania.
The high quality red wheat supplied is the predominant feed grain grown in Tasmania and will support the production of a new high welfare free range chicken to be released in Q1 2017.
With premium food consumers of chicken products concerned about the provenance of their food in terms of both the welfare of the animals and the food they eat, the agreements provide Nichols Poultry with high quality feed input and transparency around its origin.
The contracts commit Nichols Poultry to purchasing 9,000 metric tonnes of wheat, 20% of the feed wheat produced annually in Tasmania.
I do take your point Dark Capital. I hope they have a 'Plan B' for when or if the wheat crop fails. I personally love their strategy of sourcing all things Tassie (I am Victorian). Wasn't thrilled that BAL got some milk from OS. Think of all the environmental costs on that move.
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