Tegel takes flight over to Australia
Tegel Group shares have risen sharply in response to an announcement that it will be able to export raw poultry to Australia for the first time.
In a statement to the NZX, Tegel told investors that previously exports had been limited to fully cooked chicken, but work alongside the Ministry for Primary Industries had secured changed access conditions to the market across the Tasman. The shares rose 7.3 percent, or 12 cents, to $1.76.
Tegel exported chicken valued at $73.82 million to Australia in its full year 2016, less than 1 percent of a market estimated to be worth $7.49 billion.
"This regulatory change opens up significant additional export opportunities for Tegel into the Australian market, although the revenue upside cannot yet be quantified," the company said.
Tegel listed on the NZX and ASX in May, selling shares at $1.55 apiece in an initial public offering with the aim of using the money raised to target export markets.