The flawed plan to develop a demonstrator farm in Northern Ireland to showcase 'disruptive technology' to potential investors is not the only agricultural venture to be aborted by the Avocet Group as it bids to become a world leader in revolutionary farm and fuel production.
Not Just Sheep & Rugby has already reported on the plight of James and Linda Christie whose Ballinteer farm, near Coleraine, was ruined when their short-lived contract with Avocet was torn up.
The group chairman Martin Frost told the couple by email on a Saturday evening in July 2018 he was not prepared to honour the terms of a 10 year lease which he had signed only two months earlier.
It meant the Christies were left to pick up the pieces after Avocet ordered the demolition of farm buildings to make way for a 'cow palace' and an anaerobic digester. The damage inflicted on the farm steading has been estimated at more than £800,000.
But there was no mention of the attempt by Mr Frost to insert onerous new clauses into the contract when he told staff in early August 2018 that the Northern Ireland venture had been abandoned.
In a so called weekly review under the heading Irish Farming, Mr Frost wrote: "This was to be run on three sites: two in Southern Ireland, and one in Northern Ireland: unhappily, James Christie & family appears to have gone walkabouts with no communication during the last fortnight – so unless, there is a dramatic change one may consider for practical purposes the current Avocet voyage into Northern Ireland being a regrettable expensive time waste."
Mr Christie told us: "The message and attached letter we received was from Martin Frost's personal email address and the correspondence was not on Avocet headed notepaper. So can we please see the minutes of the board meeting where the decision was taken to inflict the unacceptable new terms on us?"
Avocet was asked to respond with their version of the failed Ballinteer "jewel in the crown" project, and we published Mr Frost's response in full earlier this week. The issues raised by the Christies were not addressed.
Around the time the Ulster scheme was hitting the buffers Avocet was contemplating a much larger deal - the purchase of two Italian farms for E15 million.
Details of the proposed transaction were circulated in June 2018 with an intention to buy the Onesti family's La Primavera and Le Cascine farms as well as a creamery in Parma, Northern Italy.
An Avocet report stated: "In broad terms a price of 15 million euros is due to be paid for these two farms on completion date Tuesday 31st July (2018). The month of June shall be one of due diligence and fact find upon these Onesti assets. Italian legal agents, valuers, and accountants have been appointed by Avocet Bio Solutions Plc (Avocet in Ireland and the EU).
" Amongst the Onesti family and their advisers there remains a difference of opinion as to how the 15 million is to be paid and whether it be in cash or shares in Avocet Bio Solutions Plc – note there is a wish by the Onesti brothers to give part of the consideration price to the Catholic Church – so the Catholic Church could become shareholders in Avocet Bio Solutions Plc."
The report outlined ambitious development plans for the soon to be acquired real estate.
A series of visits by Avocet representatives was designed to establish: "Quality of existing farming and livestock and how such can be improved; Location of ‘Frisona’ herds into the single ‘La Primavera’ farm site. The establishment of a Piemontese milk herd at ‘Le Cascine’ farm site. Establishment of robotic milking and fodder units; Establishment of AD / Biogas to methanol along with the use of solar power.
"Development of a 40 unit time share on the Le Cascine farm; Development of a log cabin village around lake on Le Cascine farm; Development of road side retail operation on the La Primavera farm; Development of surplus & separate villa on La Primavera farm; Development of ‘piggeries’ on La Primavera and creamery sites; Development of land south of main road on La Primavera farm. . Without damaging the core business, it may be possible to extract some 3 to 8 million euros from surplus assets."
Then a follow-up report in October 2018 noted: "On Friday 5th October, in Milan, Avocet Bio Solutions Plc convened a high-level meeting with their Italian lawyers, accountants, and professional advisers to settle out a proposed structure and timetable for the acquisition of the two Onesti farms and dairy.
"After considerable debate a working solution amenable to both Avocet and the Onesti family appears to be agreed: simply put it is likely that the new Italian corporate structure to be known as Onesti Farms with an Onesti remaining as the ‘Italian farmer’ will become 100% owned by Avocet Agriculture Italy Limited which company in turn will be a 100% subsidiary of Avocet Agriculture Ireland Limited; which company is a 100% subsidiary of Avocet Bio Solutions Plc of Cork".
But the multi-million euro deal was never signed and sealed. A December 2019 Avocet Presentation confirmed: "Financial support for the creation of Avocet Bio Solutions Plc (now an independent master franchise) proved burdensome with a failed Italian farm purchase occasioned by the death of the Onesti vendors"
No comments:
Post a Comment