Alliance Group makes net loss of $50.8m

Last updated 05:00 10/11/2012

Relevant offers

Other Sports

Joseph Parker keeps his focus as battle for world title fight rights continues New Zealand track cyclist Nick Kergozou brings renewed confidence into Tour of Southland Analysis: Was Joseph Parker's heavyweight bout 'political dynamite' for MPs? Former winner Gordon McCauley chases individual tour record on 2016 Tour of Southland cycle race Duco withdraw application for government funding for Joseph Parker title fight Valerie Adams thrilled to be New Zealand's Pacific Sports Ambassador Quiz: Test your sports knowledge - October 28 'Serious failings' in Rio Olympics anti-doping programme: Wada Route changes made for the 60th anniversary Tour of Southland cycle race 'Terrified' Danny Green misquoted in Anthony Mundine 'terrorist' jab

Southland sheepmeat processor and exporter Alliance Group has reported a $50.8 million net loss for the year ending September 30 - its first operating loss in 20 years.

As a result, its farmer suppliers will not receive any distribution payments this year.

The decision to cease sheepmeat operations at the Mataura plant, which set the company back $13.5m in restructuring costs, contributed to the loss.

Alliance Group chairman Owen Poole said the loss reflected a substantial change in New Zealand's sheepmeat export markets because of the widespread economic crisis and a strong New Zealand dollar.

"We accept that many exporters and processors like ourselves did not respond to the changing economic environment fast enough and, in an intensely competitive industry, continued to pay too much for livestock for too long," he said.

Despite the loss, the company had made several investments to help with costs, including a $15m upgrade of the beef processing at Mataura, he said.

The company anticipated a much better financial result next year, Mr Poole said.

Federated Farmers Southland meat and fibre spokesman and Alliance supplier Andrew Morrison said he did not expect to see such a significant loss.

Farmers were likely to criticise the company for poor performance but at the end of the day the money ended up in the farmers' pockets because they were paid more for their livestock, he said.

It would be interesting to see if Southland meat companies would work closer together, as suggested in the red meat sector strategy, he said.

The strategy addressed aligned procurement and market co-ordination. "It'll be good to see if they've got the appetite to address either of those issues," he said.

Beef + Lamb New Zealand economic service executive director Rob Davison said Southland processors were forecast to pay about $20 less per head of prime lamb next season.

Blue Sky Meats also reported a net loss after tax, of $449,000, for the year ending March 31.

Ad Feedback

- The Southland Times

Special offers
Opinion poll

Will Shane Cameron beat Kali Meehan on Saturday?

For sure. Cameron will knock him out.

It will be close but I think Cameron on points.

Meehan will knock him out. This is his last fight.

I'm tipping Meehan to win on points.

Vote Result

Featured Promotions

Sponsored Content