Rising up to challenges
Dr Danny Donaghy is professor of dairy systems at Massey University and a specialist in pasture agronomy and physiology.
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.”
