Even with lamb prices in the last year at their second highest level ever when converted to New Zealand dollars, on-farm profitability remains difficult, Alliance Group chairman Owen Poole says.Alliance yesterday reported an operating surplus of $29.6 mil
Even with lamb prices in the last year at their second highest level ever when converted to New Zealand dollars, on-farm profitability remains difficult, Alliance Group chairman Owen Poole says.
Alliance yesterday reported an operating surplus of $29.6 million for the year to September, down from $42.1m a year earlier. The Invercargill-based farmer-owned cooperative meat processor achieved the result on turnover of $1.4 billion, down from $1.49b.
Distributions to shareholders included pool surplus payments of $12.6m and a 5 percent fully imputed dividend accounting for $3.8m.
Mr Poole said the company had recorded a solid profit in a challenging year.
"The company has performed well operationally and in-market prices for sheepmeats at record levels resulted in the second highest lamb prices in history when converted to New Zealand dollars. Despite these achievements, on-farm profitability remains difficult."
Prospects for the company and its shareholders looked positive.
"Supply and demand fundamentals are favourable enabling the company to selectively position products in markets where greatest value can be realised," he said.
"Traditional markets are strong and a number of emerging markets provide good opportunities for now and in the future."
