Thursday, 19 November 2020 10:55

Alliance puts in good performance despite Covid-19

Written by  Staff Reporters
Processing technology to be installed at Alliance's Lorneville plant Processing technology to be installed at Alliance's Lorneville plant

Meat co-op Alliance Group announced an underlying profit of $27.4 million for 2020. Adjusted for one-off events, the annual profit result was $7.5 million before tax.

 

The co-operative achieved a turnover of $1.8 billion for the year ending 30 September 2020.

New Zealand’s only 100% farmer-owned major red meat co-operative achieved a record turnover of $1.8 billion for the year ending 30 September 2020.

Murray Taggart, chair of Alliance Group, said it is a good performance for the company given the disruption and volatility in global markets due to Covid-19.

“Like many businesses, we have been impacted by the pandemic, however our farmers also experienced extreme weather including drought, snow and flooding in parts of the country and difficult growing conditions. These on farm challenges also flowed through to the co-operative,” Taggart said.

He said that Alliance had displayed agility during the year, diverting product to other markets and changing product forms to suit different channels.

“We worked to ensure our supply chains were as robust as possible,” he said.

David Surveyor, Alliance Group’s chief executive, was also pleased by the results.

“We are proud of how our people across the business responded to the Covid-19 situation. Our people went above and beyond to deliver for our farmers, our customers and the country,” he said.

Surveyor said that the co-operative’s market share for sheep, cow, and deer grew over the past year and they have processed more than 300,000 cattle this year.

He said that improving Alliance Group’s health and safety performance would be paramount in the coming year.

“We continue to make good progress in reducing the number of people getting hurt,” he said, adding that the co-operative have invested $33 million in health and safety over the last five years.

He said they had done this “to look after our employers and ensure they go home safe and well to their families every day.”

Taggart said there would be no profit distribution to shareholders this year, reflecting the challenging operating environment.

“While we would have liked to have rewarded our farmers, we believe this is a responsible decision to ensure a profitable and sustainable co-operative for the future. We are committed to re-investing in the business to create a stronger co-operative.”

More like this

Plans in place for safe expo

Organisers of the East Coast Farming Expo are confident the annual event will be able to happen despite stricter Covid restrictions now in place.

Tears of frustration over MIQ

Despite rural contractors being told in mid-December they could bring in 200 skilled machinery operators into the country, not one has been given any MIQ space.

National

Hort heads for new heights

Pretty impressive - that's how Agriculture Minister Damien O'Connor describes MPI's latest prediction that horticulture exports will hit the record…

Machinery & Products

New look for MF brand

Massey Ferguson has a new look for its iconic triple triangle logo, as well a completely new 'Born to Farm'…

Solution to rowdy livestock

After walking away with a Fieldays Innovation Award back in June 2021, Springarm Products has now signed a sole marketing…

Look ma - no hands!

Although this month's Consumer Electronics Show (CES) in Las Vegas is usually associated with the "geek brigade", global manufacturer John…

Telehandler range gets a lift

Kramer has introduced a further two models to its telehandler range – the mini KT144 and the medium-sized KT3610.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Woof, woof!

OPINION: This old mutt has been pointing out forever just what a dog with fleas - as both a business…

DJ friends?

OPINION: Your canine crusader wants to know just what drugs the politicians and bureaucrats are on in Wellington.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter