Southland farmers will soon decide the future of Alliance Group, with shareholders set to vote on a proposed $250 million strategic partnership with Ireland’s Dawn Meats Group.

The deal would see Dawn Meats acquire a 65% stake in the co-operative, valuing Alliance at $502 million.

If approved, the investment will reduce Alliance’s short-term debt by $200 million, fund capital projects, and potentially return up to $40 million to farmer-shareholders, depending on livestock supply.

Founded in 1948 by Southland farmers, Alliance is New Zealand’s largest sheepmeat processor and a major beef exporter, operating seven plants nationwide and employing nearly 5,000 people.

However, the co-operative has faced two consecutive years of financial losses, including a $95.8 million after-tax loss in 2024.

In response, Alliance has undergone a major reset—cutting costs, closing its Smithfield plant, and modernising operations with new technology.

Despite these efforts, shareholder equity has dropped from 70% in 2017 to 48% in 2024, prompting the search for external capital.

Alliance Chair Mark Wynne says the Dawn Meats partnership offers a path to long-term stability and growth, combining Alliance’s lamb expertise and Asian market access with Dawn’s beef strength and European reach.

Alliance Chair Mark Wynne. Photo: Supplied

The deal requires 75% approval from voting shareholders and over 50% of all shares to vote in favour at a Special General Meeting in Invercargill this October.