New Zealand’s farmer-owned co-operative Alliance Group has acquired a 10.4% stake in its partner QualityNZ, which exports red meat and seafood to India.

Alliance Group chief executive David Surveyor said: “This investment in QualityNZ is consistent with the co-operative’s strategy of moving up the value chain and having an in-market presence in key regions.

“India’s fast-growing middle and upper classes have a real appetite for New Zealand lamb and value the Pure South story of grass-fed red meat produced naturally.

“We are targeting the higher socio-economic category, which is represented by more than 200 million people. It is estimated this number is expected to grow strongly within the next decade and India is forecast to soon exceed China’s GDP.”

Alliance Group has been supplying New Zealand red meat to QualityNZ since the company’s establishment in 2013.

By investing in QualityNZ, the cooperative intends to better understand the needs and requirements of its customers in India.

Several subsidiaries owned by QualityNZ represent the company in New Zealand and in India through its India-based import firm.

QualityNZ CEO Geoff Allott said: “Alliance Group and QualityNZ have formed a proven partnership over the past seven years. This investment is a natural next step to drive further growth in India and will improve the returns and add value to both businesses.

“QualityNZ has been focused on introducing Pure South lamb into the five-star hotel market, but is also making strong inroads into the restaurant, catering, organised retail and e-commerce channels.”

Alliance has also made investments in the UK and North American markets in order to establish its presence.