Alliance Group returns $9m to shareholders

Meat processor Alliance Group will pay out $9 million to shareholders after recording a turnover of $1.7 billion for the year.

The 100 per cent farmer-owned co-operative announced a profit before tax and distribution of $20.7m, and profit after tax and distribution of $4.73m, for the year ended on September 30.

The last profit distribution to shareholders was $11.4m in 2017.

This year, $15.2m was given out in loyalty payments and $30.9m in advance payments to gold and platinum shareholders.

Alliance chairman Murray Taggart said the increase in profit before tax and distribution (up from $10m in 2018) was pleasing.

‘‘We’re feeling pretty positive. Global market prices for most species were generally strong across the board. The outbreak of

African swine fever and the subsequent culling of the Chinese pig herd led to an increase in demand for other proteins such as New Zealand beef.’’

This year, for the first time, the $9m profit distribution would come with imputation credits, thanks to Alliance successfully advocating for a tax law change.

‘‘The 50 per cent investment during the year in the Meateor Pet Food business aligns with our strategy of capturing more value from every product we produce.’’

Alliance chief executive David Surveyor said the results showed the company’s transformation strategy remains on track.

To support farmers’ cashflow, the co-op has recently been able to increase to $25 per head the amount it pays in advance payments for lamb.

The distribution will be made following Alliance’s annual meeting on December 18.