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.
The company began processing cows and light bull at Lorneville near Invercargill this week after an 18-month project to further upgrade its modern venison plant on the site.
David Surveyor, chief executive of Alliance Group says the project was a key part of the co-operative’s beef growth strategy and in direct response to farmer demand.
“We have seen a steady increase in supply volumes year on year and our farmers have been seeking more beef capacity in peak season. This investment meets this need but also benefits our deer farmers because we have increased the plant’s venison processing capacity.”
The new beef processing facility will free up space at the co-operative’s Mataura plant for prime steer, heifer and bull.
Alliance Group is continuing to invest in a premium beef portfolio and strengthening its beef performance at its Mataura, Levin and Pukeuri (Oamaru) plants.
“We are focused on maximising our operational performance to benefit farmer-shareholders and create a stronger co-operative. This beef expansion also reflects our commitment to the Lorneville plant, which is an important part of our network and the Southland region,” says Surveyor.
“The expansion creates a longer season for our venison/beef plant employees at Lorneville and adds new jobs to the region.”
Alliance Group is Southland’s largest employer and the Lorneville plant alone has almost 2,000 people in total on site at peak capacity.
