increase font size
Miles Anderson.
The country's biggest meat processor is facing farmer backlash over harsh payment terms imposed on its goods and service providers.
In a move that echoes Fonterra's controversial policy, the Alliance Group is paying vendors 60 days from the end of the month of the invoice. Fonterra drew widespread criticism for a similar policy.
A vendor invoicing the co-op this week will have to wait 60 days from the end of this month for payment- almost 90 days after sending the invoice.
Federated Farmers South Canterbury Meat and Fibre chairman and Alliance supplier Miles Anderson says "a large number" of shareholders have expressed their disappointment to the board and management at farmer meetings.
"We feel that companies who do this are essentially using their trade suppliers as a bank," he told Rural News.
"It's not necessarily illegal but we feel it's not ethical."
Alliance general manager strategy Nigel Jones says last year it advised vendors about the change in payment terms, after a review of internal operating processes.
"Payment is now made a net 60 days from the end of the month of the invoice," he told Rural News.
"Previously, we had a myriad of payment terms in place and the standardisation was part of a wider programme to improve Alliance Group's operations.
"These changes sought to bring our goods and services suppliers closer into alignment with our own cash cycle. We pay for stock, incur the costs of processing, but don't receive revenue from our customers for months.
"We gave this matter a great deal of thought and were careful to provide sufficient notice of the change to allow any businesses to adjust their own business practices."
However, transport companies, ferrying livestock from farms to processing plants, raised their concerns directly with farmers.
Anderson says farmers have sympathy for transport companies.
"We feel they operate on pretty low margins; they have their staff and stuff to pay for."
"It's not a good look for our co-op; we, farmers work on paying our contractors on the 20th of each month and there's no reason why our co-op shouldn't do the same."
Anderson says farmers were under the impression that the policy was under review after they raised the issue with directors.
He says the co-op's board and management have implemented a range of great measures to control costs. However, the extended payment term hasn't gone down well with shareholders.
Alliance says the change did not affect farmers who provide livestock to the company.
It also denied suggestions that it plans to enter into an exclusive contract with any one transport operator to carry farmers' livestock.
In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.
A four year trial has reaffirmed that mixing plantain into dairy pastures can help reduce nitrogen losses to freshwater while maintaining milk production and profitability, say researchers.
Fonterra has opened its upgraded Chengdu Application Centre, bringing New Zealand dairy expertise closer to customers in one of China's fastest-growing regions.
Tatua chair Stephen Allen says he leaves the co-op with a deep sense of gratitude for the people who have contributed to its success.
Federated Farmers president Colin Hurst and his family raised a glass of milk last week to toast the start of a new addition to their farming operation at Makihihi, south of Timaru.
Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.
For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.
West Otago dairy farmer Luke Kane has been awarded the 2026 Rabobank Dr John Morris Business Development Prize.
OPINION: As the general election approaches, political parties are churning out policies in the hope of attracting more votes.
An LIC bull, Tronnoco AR Sadio-ET S3F, bred by Tony and Keri O'Connor of Tronnoco Farming Co Ltd near Timaru, has won the 2026 Mahoe Trophy.
With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.
