Loyalty programme awards $4.5m to Alliance farmers
Alliance Group farmer-shareholders are being rewarded for their loyalty with the meat company distributing $4.5 million to them.
The co-operative's platinum and gold farmer shareholders are paid a loyalty payment for each stock species they supply to Alliance.
Farmers supplying 100 per cent of their lambs are paid an additional 10c cents per kilogram per animal, sheep 6c/per kilogram per animal, cattle 8.5c/per kilogram per animal and deer 10c/per kilogram per animal.
The co-operative has so far distributed more than $13.8m in loyalty payments to farmers this year.
Chief executive David Surveyor said the payment recognised the loyalty of farmer shareholders.
"Our shareholders are rewarded for their committed and consistent livestock supply. These loyalty payments strengthen our competitive advantage, building on our efficient livestock processing position and market penetration."
Alliance was New Zealand's only remaining 100 per cent farmer-owned red meat co-operative. Every cent was either re-invested into the business or delivered back to farmer-shareholders, Surveyor said.
"Alliance's co-operative principles also mean the interests of farmer-shareholders are at the heart of every decision the company makes."