Farmer-owned red meat co-operative Alliance Group has announced a $117.2 million profit on the back of a record $2.2 billion turnover for the year ending 30 September.

This represents a massive 186% increase in profit from last years result.

The co-operative said $11.3m profit will be distributed back to its farmer shareholders, while a further $10 million bonus shares will be issued at one share per qualifying stock unit. 

Murray Taggart, chair of Alliance Group, said that 2022 has been a positive year for the company. 

“Our record operating profit reflects strong global demand for our products, a reward for our success in capturing greater value from our markets, the hard work and dedication of our people and our farmers’ passion for producing the world’s best beef, lamb and venison."

“Like many businesses, the co-operative faced significant volatility including from the ongoing impact of COVID-19, global supply chain disruption, labour constraints and inflationary pressures, however our strategy and investment programme meant we were able to successfully navigate the challenges."

“We ended the year with a sound balance sheet and reduced inventory levels compared to the previous year."

“We are mindful of the volatility in our global markets and the uncertain economic outlook. The profit distribution allows Alliance Group to return value to our shareholders whilst at the same time continue to invest in the future of the company and retain sufficient funds to manage through any potential future economic uncertainty.”  

David Surveyor, chief executive of Alliance Group, said the financial performance was the result of hard work and dedication from employees and support from loyal farmer-shareholders.

“Alliance Group continued to experience significant challenges around global logistics with poor vessel adherence to shipping schedules and high freight costs."

“As a co-operative, we adopted an agile approach, and where necessary, re-balanced our product mix, forms and channels so we could continue to meet the needs of our customers.”

Significant investment in improving the operational performance also contributed positively to the record profit result.

“We have invested across our plant network in recent years and this played a key role in significantly improving our performance. We’re already seeing gains from the new generation primal cutter and middles machine installed at our largest plant at Lorneville near Invercargill and our product quality and yield have improved across the board.”

Interest from farmers in the co-operative’s premium Handpicked lamb and Handpicked beef programmes is growing, Surveyor said.

“We have continued our investment in developing our brands globally. Alliance recently added Pure South Handpicked Venison to our premium portfolio and this will be exported to Alliance’s traditional markets such as Europe, but also to burgeoning markets such as North America where the demand for venison is increasing.

“That means every Alliance farmer now has the chance to partner with us on our premium range and be rewarded for producing quality animals aligned to the needs of our customers across the globe.”