increase font size
Alliance Group chair Murray Taggart says it has been a positive year for the meat company.
Meat processor and marketer Alliance Group has had a good year reporting a record profit of $117.2 million for the 2021-22 financial year.
The meat co-op says the result was based on a record turnover of $2.2 billion and it will pay an $11.3m dividend to farmer shareholders. It will also pay out an additional $10 million bonus share issue of one share per qualifying stock unit.
Alliance Group chair Murray Taggart says it has been a positive year for the company.
“Our record operating profit reflects strong global demand for our products, a reward for our success in capturing greater value from our markets, the hard work and dedication of our people and our farmers’ passion for producing the world’s best beef, lamb and venison.”
Taggart concedes that Alliance had faced significant volatility during the year – including from the ongoing impact of Covid- 19, global supply chain disruption, labour constraints and inflationary pressures.
“However, our strategy and investment programme meant we were able to successfully navigate the challenges.”
He says the meat co-op ended the year with a sound balance sheet and reduced inventory levels compared to 2020-21 year.
Chief executive David Surveyor – who leaves the company next March – says the financial performance is the result of hard work and dedication from employees and support from loyal farmershareholders.
“Alliance Group continued to experience significant challenges around global logistics with poor vessel adherence to shipping schedules and high freight costs.”
He claims that significant investment in improving the co-op’s operational performance also contributed positively to the record profit result.
“We have invested across our plant network in recent years and this played a key role in significantly improving our performance. We’re already seeing gains from the new generation primal cutter and middles machine installed at our largest plant at Lorneville near Invercargill and our product quality and yield have improved across the board.”
Surveyor concedes that the disruption caused by the Covid- 19 pandemic, rising farm input costs, a wave of regulatory reform, extreme dry conditions and flooding in parts of the country meant farmers had faced difficult times.
“These events certainly tested the sector’s resilience and fortitude. However, it also showed the value of belonging to a co-operative. This year, we welcomed a record number of new shareholders to Alliance Group as more farmers recognised how the co-operative has their back during difficult times.”
Alliance’s annual meeting will be held in Timaru on December 15.
Alliance Group's proposal to sell a 65% shareholding to Ireland's Dawn Meats won't solve the red meat industry's structural problems, says former Federated Farmers meat and wool chair Toby Williams.
Alliance Group has announced plans to sell a 65% stake in the farmer-owned co-operative to Irish meat processor Dawn Meats Group for $250 million.
Irish meat processor Dawn Meats is set to acquire a 70% stake in Alliance Group, according to a report in The Irish Times.
The next phase of the Taste Pure Nature campaign has been launched in Shanghai, China.
Alliance Group has secured greater access for chilled beef exports to China, following approval for two of its processing plants to supply the market.
NZPork has appointed Auckland-based Paul Bucknell as its new chair.
The Government claims to have delivered on its election promise to protect productive farmland from emissions trading scheme (ETS) but red meat farmers aren’t happy.
Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.
The Ministry for the Environment is joining as a national award sponsor in the Ballance Farm Environment Awards (BFEA from next year).
Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.
OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.
