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9 Elk stand tall at deer stud sales Vol 23 No 3 | January 27, 2025
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Keep it co-op, urge Alliance stakeholders NEWS
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Production
LLIANCE Group shareholders will lose influence and the meat industry a price setting yardstick should it cease being a co-operative, say supporters of the co-operative model. A group of Alliance shareholders formed to promote discussion on the role of co-operatives said farmers need to know the cost and implications should the country’s largest 100% farmerowned co-operative be fully or partly sold. The chair of the group, Andrew Morrison said business owners reap the financial benefits, as they should, and currently for Alliance those benefits go back to its cooperative owners. Group member David Pinckney believes many of his fellow shareholders do not appreciate what they will be losing nor the longterm implications of a business model that is not a co-operative. “I feel if we lose this one, that difference may not be in our profit and loss accounts this year or next year but it will play out in the long-term future. “Alliance shareholders and the red meat sector generally will be worse off.” They acknowledge the timing of going to shareholders for new capital has not been helped by two years of low sheepmeat prices.
Lincoln University agribusiness professor Hamish Gow said cooperatives ensure red meat and dairy suppliers receive a fair price and they provide market discipline and insurance for their suppliers by maintaining processing capacity when it is needed. “Whether it’s Alliance or not, what we know is it’s important to have a co-operative operating in market channels as it creates market pressure by being a yardstick, allows flexible farming systems and an insurance so farmers can move animals when weather events move against them.” Southland farmer and shareholder Matt McRae said neighbours and friends who are not Alliance suppliers tell him of the importance of the co-operative in setting prime stock prices for the industry. He said the sheep industry needs to be strong for future generations of young farmers. “We can’t keep shrinking to success so we must ensure the sheep industry is profitable and an Alliance co-operative is a big part of that.” The Alliance board needs up to $200 million in new capital but announced at last month’s annual meeting that it is pausing the capital raise from shareholders through livestock deductions and the issuing of new shares and Continued page 4
Fourth-generation Southland sheep and beef farmer and Alliance shareholder Matt McRae says a strong industry and strong Alliance Group co-operative are needed to ensure there will be a fifth generation on his Wyndham farm. Photo: Gerhard Uys
Micro-nutrients study a new tool for fert use
S FOECT CU OR S
Neal Wallace
FAR regional facilitator Donna Lill says a project measuring micronutrients aims to give arable farmers a better handle on efficient fertiliser application.
ARABLE 15 NZ milk production biggest QEII Trust is approaching in a decade; record monthly a financial cliff as funding payouts. ends.
How harmless are the lies some opt to believe, asks John Foley.
NEWS 3
OPINION 13
NEWS 6