Tuesday, 23 November 2021 13:55

Alliance Group announces annual result

Written by  Staff Reporters
Alliance Group chair Murray Taggart. Alliance Group chair Murray Taggart.

Alliance Group has announced an operating profit of $41.9 million before tax and distributions for the year ending 30 September 2021.

A profit distribution of $8.5m will be made to its farmer shareholders, in addition to $16.7m in loyalty payments already paid over the course of the year. The co-operative’s turnover was $1.8 billion.

Murray Taggart, chairman of Alliance Group, says Alliance’s improved performance is a favourable result after a challenging year, and reinforces the validity of the co-operative’s reinvestment strategy, with several years of sustained capital reinvestment reflected in the profit result.

He also acknowledges the way staff have effectively managed both the response to Covid-19 and ongoing global supply chain issues.

“Similar to many New Zealand businesses, we have experienced significant global supply chain disruption over the last 12 months. Our people worked with farmers, transport providers and shipping companies to make sure we were able to continue to move livestock off farms and utilise both our plant network and infrastructure to ensure this was almost invisible for farmers.

“We have ended the year in a strong position, but we know the next 12 months will continue to be volatile. We have therefore endeavoured to balance our desire to reward our farmer shareholders with the need for caution in the face of ongoing and unprecedented global logistics disruption.”

Alliance Group chief executive David Surveyor says he is particularly proud of the way staff responded to both the challenges and opportunities of the past 12 months.

“Whilst pleased with the improved profit result, we had global customers seeking product which we could not load and ship at the rate we would have liked. This has had a meaningful impact on our inventory and cash flow. 

“One of the benefits of our balance sheet is that we have been able to use it in these times. It is our view that global logistics and supply chains will be challenged well into the foreseeable future, therefore we are improving systems and processes to speed our cash cycle.”

Overall, it has been a strong year for the co-operative, says Surveyor.

Alliance says it is starting to see investment in premium programmes deliver intended value to farmers. Support from farmers in the co-operative’s premium handpicked lamb and beef portfolio continue to strengthen as premiums paid for qualifying animals increase.

“We are seeing the benefits of our Manufacturing Excellence Programme, with the performance of plants improving year-on-year. This has created greater processing capacity for our farmers.

“This year, we increased our bovine network capacity by 10 per cent. We processed more cattle this year than the previous year. While this is good news for farmers and customers, we now need to leverage capacity and fully realise efficiencies if we are to achieve our ambitions.

“We continue to lead the industry in health and safety. We kept our people, partners and customers safe during all COVID-19 outbreaks.

“Our people deserve the credit for this year’s result. They have gone above and beyond to deliver for our farmers and customers around the world. They know how important it is that we meet our farmers’ expectations and are always looking for ways to lift performance and deliver results.”

The Annual Result also includes allowances for historical employee entitlements.

More like this

Alliance Group's online sales surge

Online sales via Alliance Group’s online red meat delivery channel puresouthshop.com have grown significantly during the Covid-19 alert level restrictions.


Rounding up on Round-Up

There's growing talk around New Zealand and the world about glyphosate being a health hazard, possibly a carcinogenic.

Machinery & Products

Vaderstad's new drill is Inspire(d)

Tillage, seeding and planting specialists Vaderstad has introduced its new Inspire product range – focused on the 12-metre seed drill…

JD's new 6Rs for 2022

With the upcoming market year 2022 (MY22) only a few weeks away, John Deere has released details of changes to…

New features on Case IH Optum

The latest Case IH Optum AFS Connect range features a new cab, interior and connectivity package designed to benefit both…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Fond farewell

OPINION: Your canine crusader would like to pay tribute and a fond farewell to former Agriculture Minister and Dairy NZ…

Front page!

OPINION: This old mutt reckons (un) social media is just an echo chamber of self-important, self-professed experts who lecture and…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter