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 cooperative will be the sole supplier to Marks & Spencer from Christmas 2012, sourcing lambs from approved South Island farms for processing at the company's Lorneville (Invercargill), Pukeuri (Oamaru) and Smithfield (Timaru) plants.
This is the first time Marks & Spencer has agreed to an exclusive deal for chilled lamb from a single New Zealand supplier.
All Alliance Group products supplied to Marks & Spencer will be sourced from registered M&S Select farms so that the cooperative can trace lambs back to their farm of origin.
The M&S Select Farm scheme has supplying farmers registered on M&S Trak, a traceability management system launched by Marks & Spencer in 2009. The programme, which includes lamb suppliers from New Zealand and the UK, has a database that monitors farm management, animal origin and livestock records.
Meanwhile, in conjunction with AbacusBio (UK), Alliance Group is introducing its Hoofprint programme to selected UK farmers supplying lambs to Marks & Spencer. Hoofprint helps farmers monitor their carbon footprint and improve productivity. The Hoofprint model will be released to all registered Trak suppliers in New Zealand.
