Thursday, 17 November 2022 14:41

Record profit for Alliance Group

Written by  David Anderson
Alliance chair Murray Taggart. Alliance chair Murray Taggart.

Alliance Group has announced a record profit of $117.2 million for the year ending 30 September 2022.

This is a 186% increase on the previous year. The meat co-op says it is based on a record turnover of $2.2 billion and will be making an $11.3m profit distribution to its farmer shareholders. An additional $10 million bonus share issue of one share per qualifying stock unit will also be paid out.

Alliance Group chair Murray Taggart says 2022 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 the previous year.

“We are mindful of the volatility in our global markets and the uncertain economic outlook. The profit distribution allows Alliance Group to return value to our shareholders whilst at the same time continue to invest in the future of the company and retain sufficient funds to manage through any potential future economic uncertainty.” 

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 farmer-shareholders.

“Alliance Group continued to experience significant challenges around global logistics with poor vessel adherence to shipping schedules and high freight costs.”

He added 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 Annual Report can be viewed here: https://www.alliance.co.nz/about-us/annual-reports/

More like this

Still a slow boat to China!

Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.

Back to the tractor!

Alliance Group chair Murray Taggart is looking forward to spending more time on farm as he steps down after a total of about 18 years on the meat co-operative's board, including the last 10 years as chairman. Nigel Malthus reports...

SFF joins the slaughter

Meat processor and exporter Silver Fern Farms Ltd has joined fellow South Island-based meat company Alliance Group in reporting a big loss for the past year.

Stock beginning to flow as market headwinds gather

Alliance Group says following delayed livestock flows - due to ideal growing conditions in both the North Island and the southern South Island - sheep and beef processing numbers are starting to crank up in the move to autumn.

Featured

Rural Change to merge with RST

The Rural Change programme, providing free private mental health professional sessions to the rural industry, is set to continue its next chapter within Rural Support Trust from 1 July 2024.

Strong growth in farm salaries - report

A new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets – their staff.

National

Celebrating success

The Director General of MPI, Ray Smith says it's important for his department to celebrate the success of a whole…

Machinery & Products

Factory clocks up 60 years

There can't be many heavy metal fans who haven’t heard of Basildon, situated about 40km east of London and originally…

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

» Latest Print Issues Online

The Hound

Cut with care

OPINION: The new government has clearly signalled big cuts across the public service.

Bubble burst!

OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter