Alliance commissions major heat pump system at Mataura, cutting coal use and emissions
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.
For the year ending 30 September 2025, Alliance recorded a net profit before tax of $24.6 million on revenue of $2.1 billion, compared to a net loss before tax of $120.8 million on revenue of $1.8 billion the previous year.
Alliance chair Mark Wynne says the result represents a significant milestone in Alliance's reset as the company looks forward to its joint venture partnership with Ireland-based Dawn Meats.
“After two very challenging seasons, it’s pleasing to return to profit. This result reflects the hard decisions we’ve made as part of our ruthless back-to-basics strategy," Wynne says.
“We have also worked hard to reduce our reliance on sheepmeat by strengthening our beef capabilities, diversified our market mix and enhanced transparency with our farmer-shareholders.”
Wynne says the strategic investment partnership with Dawn Meats, approved by farmer-shareholders in October, will further strengthen Alliance's financial position and long-term competitiveness.
“The partnership will ensure Alliance has the financial strength, scale, market reach and capability to thrive in global markets while safeguarding the interests of our farmers.
“Following a full business reset, Alliance has adopted a disciplined, back-to-basics approach focused on creating more market value, returning more value to farmers and driving greater enterprise efficiency.
“Over the past 12 months, Alliance has strengthened its financial position by reducing costs and optimising processing capacity. We have enhanced farmer offerings, invested in smarter technology, reduced inventory levels by around half compared with the same time last year and improved sales velocity.
“For the first time in many years, the company also funded capital expenditure on fixed assets directly from free cash flow.”
Meanwhile, Alliance chief executive Willie Wiese says the results show the company's strategy of focusing on the core business through its back-to-basics approach is working.
“We’ve focused on the business fundamentals of enterprise efficiency, market value creation and organisational discipline -- and the benefits are now flowing through to farmers.
“Operational improvements have lifted yields across all species through better plant performance and processing reliability. These changes have already made a tangible difference to farm-gate returns.
“The changes we have made to the way we sell, supported by positive pricing and demand across key export markets, provided a welcome boost after two difficult years when many farmers faced losses following a sharp correction in ovine pricing in China.
“While trading conditions in China remain challenging, Alliance’s diversified market approach helped balance performance. Strong demand in North America, Europe and the United Kingdom contributed to the positive result.
“Beef demand was particularly strong in the United States, where herd numbers are at their lowest for 75 years and domestic consumption remains high.
“Our long-standing customer relationships again proved their value, helping maintain pricing stability for our farmers.”
Wiese says technology has also played in Alliance's turnaround.
“The rollout of a new Enterprise Resource Planning (ERP) system improved transparency, strengthened control and enhanced decision-making across the business.
“Combined with disciplined cost management, sharper execution and improved processing performance, these changes have created a leaner and more agile business, capable of responding quickly to changing market conditions.
“The past year has been about creating organisational effectiveness and running the business more efficiently, making better use of every dollar, and rebuilding trust and confidence with farmers.
“There’s still work to do, but the foundations are now in place. We’re grateful to our farmers for their loyalty and commitment as we’ve reshaped the business.
“The Alliance team deserves a lot of credit for our turnaround. Our people have worked hard to get the company back onto a firm footing despite significant uncertainty, showing real commitment and pride in what we do for our farmers and communities.
“With the back-to-basics approach now embedded, we’re well positioned to achieve our ambition of creating a high-performing company for our people, farmers and customers.
“We’re excited about our new partnership with Dawn Meats and the potential value it will unlock in the business and across the globe.”
