Posts Tagged ‘Alliance Group’

Cooperative model not ideal for all business types

May 8, 2019

Cooperatives emerged in the 19th century as an important business structure designed to protect the interests of a group of members, based on the principle of equitable distribution of benefits related to use or supply. The first New Zealand cooperative was formed in 1871 by eight cheese making settlers on the Otago Peninsula; by 1890 40% of dairy factories were cooperatives and by 1925 there were about 500, of which only three remained after the formation of Fonterra in 2001. (more…)

Alliance puts positive spin on disappointing result

December 7, 2018

It was a profit, but, as Alliance chairman Murray Taggart told me, “we don’t budget to make $8 million on turnover of $1.8 billion.” The just announced 2018 result compared with the previous year’s operating profit of $20.2 million, although after pool payments the 2017 profit was only 11% higher than the latest year. (more…)

Meat company results only average for 2017 – will 2018 be any better?

June 11, 2018

ANZCO’s lacklustre result for 2017, posted last month, concludes the financial reporting for last year by the three major processors which publish their results. ANZCO’s pre-tax profit was $1.8 million which compares disappointingly with Alliance Group’s $16.7 million profit and Silver Fern Farms Cooperative’s 15 month profit of $7.8 million. (more…)

Steady progress with Primary Growth projects

June 14, 2017

It is eight years since the Primary Growth Partnership programme was announced by the then recently elected National Government. At the end of 2016 there were 20 projects under way and just two completed, but 30th June sees the completion of FarmIQ, the largest of the red meat sector programmes. This seems to be an appropriate point to evaluate the success of PGP, in particular the six meat and two wool programmes which have been allocated total Crown and industry funding of $342 million. (more…)

Meat exports sold to more than 100 countries

May 30, 2017

New Zealand’s meat exporters come in for a lot of criticism, either for selling too cheaply or for not adding value, and certainly because they can’t (or don’t) pay farmers enough for their livestock. This final criticism is presumably a direct result of the first two – the prosecution’s case argues if they sold product at a higher price or added more value, they would automatically be able to pay more for livestock. (more…)

Heavy market share losses affect Silver Fern Farms’ financial performance

January 26, 2017

In recent weeks there has been an exchange of views about PPCS’s acrimonious takeover of Richmond in 2003. Keith Cooper, ex CEO of the renamed Silver Fern Farms, emerged from anonymity in Middlemarch to castigate the appointment of Sam Robinson to the board of Silver Fern Farms as the Shanghai Maling representative. He was critical of Richmond’s rejection of the original approach by PPCS to buy the Freesia Investments shares from the Meat Board in the mid-1990s and Robinson’s role as Richmond’s chairman. (more…)

Alliance in good shape

November 12, 2016

Alliance has produced a solid result for the year ended 30 September with a pre-tax profit of $10.1 million compared with $7.9 million for the previous year achieved on 9% lower revenue of $1.366 billion. Of greater significance to farmers is the decision to distribute $9.8 million to shareholders, while the company’s equity position has improved from 58% of assets to 72%. Debt reduced from $129 million to $41 million with no seasonal debt at year end. (more…)

Alliance enforces shareholding commitment to match supply

February 16, 2016

After many years competing for livestock without compelling suppliers to invest in the full number of shares required in principle, Alliance Group has seized the opportunity offered by Silver Fern Farms’ likely shareholding change to review its capital base. (more…)

Partnerships the key to China business models

January 13, 2016

It’s true of any marketing and distribution strategy, but China’s size and comparatively underdeveloped cold chain make this factor even more important for the successful development of agricultural business there. (more…)

Cooperatives and private companies work best in agriculture

September 14, 2015

Good company performance demands clarity of purpose which is defined and monitored by a board of directors elected or appointed by the shareholders. There are five main types of company ownership structure that are or have been represented in New Zealand’s agricultural sector and each has advantages and disadvantages. (more…)