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 Group and in-market Chinese partner Grand Farm have committed to a significant expansion of the co-operative's grass-fed lamb, mutton, beef and venison across China.
The companies, which have been partners in China for almost 25 years, signed a memorandum of understanding (MoU) in Beijing as part of Prime Minister Chris Hipkins' recent visit to that country.
Alliance's general manager sales, Shane Kingston, who is part of the PM's business delegation to China, signed the MoU alongside Grand Farm president Mr Xibin Chen.
"This agreement marks a new phase in the long-standing partnership between Alliance and Grand Farm, China's largest importer of sheep meat," Kingston says. "It reflects our shared ambition for Grand Farm and Alliance to be the leading red meat provider in China.
"We look forward to introducing Pure South, Silere, Lumina and Handpicked product ranges to a broader base of Chinese consumers across multiple channels and strengthening the brand presence and value creation from our premium portfolios."
Alliance Group celebrates its 75th anniversary this year, while 2024 will also mark the 25th year of the co-operative's relationship with Grand Farm.
The company has been working in China since the mid-1990s and is the largest exporter of New Zealand lamb to the country.
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