World Butchers' Challenge captains go head-to-head before competition
Ahead of the World Butchers' Challenge, the captains of 14 nations’ teams squared off in Paris over the weekend.
Alliance Group has reported a pre-tax profit of $7.9 million on the back of challenging sheepmeat markets.
The result for the year ending September 30, 2015 compares to a $17.6 million pre-tax profit last year and is based on a turnover of $1.5 billion.
Murray Taggart, chair of Alliance Group, says after a slow start to the year, the final 7-8 months delivered stronger results, despite market turbulence.
The result comes as the cooperative begins implementing a new business strategy designed to maximise returns to committed farmer shareholders.
Taggart says the result underlined the difficult year for both the cooperative and farmer-shareholders with some parts of the country experiencing drought and others flooding.
"There was a considerable slow-down in key sheepmeat markets such as China and the UK," says Taggart.
"As New Zealand's largest sheepmeat processor, it will come as no surprise that the volatility of the sheepmeat market in particular has had a pronounced effect on our profit result.
"With a high proportion of our business in sheepmeat, we have taken a bigger hit this year, however our beef business has had a strong year on the back of globally higher beef prices.
"Despite weakening overseas markets, Alliance Group made the difficult decision to keep taking lamb and sheep from our farmer-shareholders, therefore reducing their exposure to the volatile markets and limiting the impact of continuing dry conditions.
"The alternative of reducing our processing would not have been in line with our cooperative principles and would have adversely impacted our farmer-shareholders.
"This is the unique difference in being a 100% New Zealand farmer owned cooperative, we look at things through the lens of what's important to our farmer-shareholders."
Taggart says the decision to continue taking stock led to a build-up of stock levels with a corresponding impact on cash flow.
"This inventory has since been sold through and our stocks are back within normal trading levels."
The company's balance sheet remained strong and provided a solid foundation from which to deliver the new strategy and improve profitability, he said.
Farmers are feeling more satisfied with their banks, but the situation remains fragile, says Federated Farmers.
Environment Canterbury has confirmed a surge in interest in new dairy conversions, with four effluent discharge permits for conversions granted since the start of the year.
Probably the smoothest season growers can remember. That's how Kiwifruit Growers Association (NZKGI) chief executive Colin Bond describes the situation with fruit picking just past its peak.
The golden weather of international trade is well and truly over, according to New Zealand's top trade negotiator.
A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.
Associate Agriculture Minister Andrew Hoggard says the consenting experience facing some high-country Canterbury sheep and beef farms is "bloody tragic" and vindicates the Government's move to abolish the Resource Management Act (RMA).
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