Meat co-op dilemma
Meat processor Alliance Group's cash-strapped farmer shareholders face a dilemma - either pour more money into the co-operative or risk losing 100% ownership and control.
Alliance’s platinum and gold shareholders, who supply 100% of their stock to the cooperative, have received the quarterly payments, which cover the period July-September 2018.
It brings the total amount distributed to loyal shareholders for the 2017-18 season to $16.77 million, an increase of 9.3% compared to the 2016-17 season.
Farmers supplying 100% of their lambs are paid an additional 10c/kg for each lamb, 6c/kg for sheep, 8.5c/kg for cattle and 10c/kg for deer.
Alliance chief executive David Surveyor says the loyalty payments reflect how serious the co-op is about rewarding consistent and committed supply.
“As New Zealand’s only 100% farmer-owned major red meat cooperative, farmers are at the heart of every decision we make. We’re committed to delivering our profits back to farmers or re-investing them into the business so we can deliver greater returns.
“Our farmers receive a range of other benefits above the price on the day including through our yield mechanism, priority processing and free store stock facilitation.”
The $1.73m was distributed in shareholders’ bank accounts on Wednesday.
