Friday, 07 November 2014 09:45

Meat co-op profit soars

Written by 
Murray Taggart Murray Taggart

MEAT CO-OP Alliance Group has reported a pre-tax profit of $17.6 million for 2013-14.

 Supplier shareholders will receive a $7 million pool payment distribution- the first in three years. Last year the co-op reported an $8.4m pre-tax profit.

The result for the year ending 30 September 2014, based on an improved turnover of $1.46 billion, follows rising consumer confidence, the gradual recovery of the global economy, a growing demand for red meat products and improving market prices.

Alliance chairman Murray Taggart says the result and the outlook for the year ahead means the company is well placed for further growth.

“Good international demand and the ongoing development of new markets indicate positive signs for the year ahead. The 2014 year has been one of consolidation and our improvement in profit reflects our continuing focus on operating efficiently.

“Our pool surplus payment to our supplier shareholders, as a result of our improved earnings, shows we’re serious about recognising the investment that farmers continue to make in the co-operative and rewards their loyalty and support.”

Grant Cuff, chief executive of Alliance Group, says the company’s global markets showed improved demand and increased pricing.

“The global demand for protein is growing and we have made significant strides over the past year.

“The ongoing demand from China for lamb and mutton has underpinned global supply and pricing. This growth, coupled with the country’s rising population, increased urbanisation and the emergence of a middle class, means China is now our largest export market for sheepmeat.

“However, our traditional markets in Europe and North America also continue to show encouraging signs of recovery.”

Cuff, who stands down as Alliance Group chief executive next month, says the company is making steady progress in developing new markets such as India and Brazil to ensure the co-operative enjoyed a diverse mix of customers.

While strong pricing in North America for beef was expected to level off once Australasian supply recommences, higher cattle prices are expected to hold over the coming year.

Major importers of venison are regaining confidence on the back of an improved European game season.  Overall, 2015 returns for sheepmeat and venison are expected to be at least similar to 2014.

 

More like this

Featured

Editorial: Right call

OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter