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.
Big staff rumblings, safety issues and the likelihood of yet another poor result are claimed to be unfolding at the Alliance Group.
Read Alliance Group's response here.
According to Rural News sources, the meat processor, which labels itself as New Zealand’s only 100% farmer owned meat cooperative, has now lost five members of its 10-person executive leadership in less than two years.
The latest loss was the shock departure of Heather Stacy, general manager livestock, who resigned earlier this month. Her quitting made a total of five executive leadership team resignations within the past 20 months under the controversial leadership of Australian chief executive David Surveyor.
Stacy’s resignation follows the departures this year of Alliance’s chief information officer, the general manager of marketing and the general manager of sales. All resigned.
Meanwhile, Rupert Mitchell recently quit as the Lorneville plant manager, meaning 100% of the co-op’s processing plant managers have turned over in the last few years.
Rural News is told this long list of senior executive resignations and departures can be blamed on the company’s culture, described as “seriously toxic” and in “free fall”. All this is being sheeted home to chief executive David Surveyor’s leadership style described as an “old-fashioned 1970’s, big stick style -- cancerous and bullying”.
Alliance’s board, including chairman Murray Taggart, have been accused of being “ineffectual” and are said to be well aware of Surveyor’s heavy-handedness. Many report bullying, internal culture issues, escalating recruitment costs and repeated calls for internal reviews.
Rural News understands Surveyor was brought into the meat co-op by Taggart as an experiment to shake up the sleepy processor. But many now feel the company is so damaged by his management regime that it may be irreparable. Several of these senior staff resignations were Surveyor’s own hires.
Industry insiders predict Surveyor is positioning himself for a quick exit. They point to a new, professionally written, LinkedIn profile of Surveyor, poor profit results and intense board scrutiny.
And there’s an issue in unravelling plant safety, especially in some of the co-op’s old South Island plants.
There are claims the company is struggling to get on top of asbestos and ammonia safety at these plants. The ammonia systems are said to be in such decay that they could seriously threaten local communities as well as the workers.
“Naturally, plant maintenance seriously bites into profitability and most of these plants are seriously antique,” the source told Rural News. “Surveyor and the board know these risks and are holding things together with plasters and nice press releases.”
The bad news does not stop there. Sources also claim that Alliance is reportedly making nothing from lamb and is weak in beef, pointing to what many commentators expect will be another “very poor” annual profit result. – Alliance response, p11
According to the latest Federated Farmers banking survey, farmers are more satisfied with their bank and less under pressure, however, the sector is well short of confidence levels seen last decade.
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
Former Agriculture Minister and Otaki farmer Nathan Guy has been appointed New Zealand’s Special Agricultural Trade Envoy (SATE).
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
Meat processors are hopeful that the additional 15% tariff on lamb exports to the US will also come off.

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