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S E C T I O N 7 : Our Farmers and Their Produce

part of the culling programme ordered by the Ministry for Primary Industries. We brought on additional capacity at our Mataura, Levin and Pukeuri plants to help accommodate the increased volumes. The co-operative also prioritised platinum Platinum and Gold shareholders and, when necessary, stopped taking livestock from non-shareholders. MINIMUM PRICE CONTRACTS BOOST This year we offered 18 Minimum Price Contracts to our farmers as part of our commitment to providing certainty for farming businesses. The contracts are designed so that the co‑operative takes a position on pricing, removing any potential downside risk for farmers, but allowing farmers to participate in any upside. For the co-operative, they help with planning for livestock flows so we can have the required capacity available for farmers. The contracts were extremely popular and we will be offering additional options over the coming year. FA R M A SS U R A N C E P RO G R A M M E Our Farm Assurance Programme is trusted by our customers who pay for its guarantee of quality and excellence. Alliance was the first red meat company in New Zealand to launch its own comprehensive Farm Assurance Programme (FAP) more than 20 years ago. Since then, our FAP has evolved to take a more holistic view of farming including the land and people as well as animal welfare, traceability and food safety. This year, we updated our FAP, which was developed in conjunction with farmers. Having our own FAP allows us more agility to move with the market trends and the Customer Codes of Practice. Being part of the Alliance FAP enables the co-operative to continue to access high value markets, so that we can capture greater premiums and pass these gains back to our shareholders. Our global customers also tell us consumers value and care about how their food is produced and its provenance and seek assurances that the food

ALLIANCE ANNUAL REP ORT 2018

that they are purchasing is produced in a safe and sustainable way under ethical farming practices. R E WA R D I N G L OYA LT Y We value consistent and committed supply from our farmer shareholders. Alliance distributed a total of $14.63 million in loyalty payments to committed shareholders during the 2017/18 season. The quarterly payments were made to our Platinum and Gold shareholders who supplied 100 per cent of their stock to the company. M E E T I N G O U R FA R M E R S Approximately 1,000 shareholders attended our annual farmer roadshow meetings across the country during September and October. The roadshows were an opportunity for the Executive Leadership Team and Directors to meet with farmer shareholders and update them on our strategy, progress and plans— and for farmers to ask questions and share their ideas in person. The Executive Leadership Team also ran presentations at our plants and offices. In response to feedback from our shareholders, we also extended our Women’s Workshops this year to become the Winter Workshops series. The workshops were held at locations across the country during July and attendees received updates on the latest developments in the co‑operative, including around global markets and products. Alliance directors and staff were on hand to answer questions and directors outlined recent visits to overseas customers.

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Annual Report 2018  

Annual Report 2018  

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