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S E C T I O N 9 : Global Markets

ALLIANCE ANNUAL REP ORT 2018

Capturing Greater Market Value DIVERSIFYING VENISON INTO OTHER MARKETS While the New Zealand venison market has traditionally depended on Germany, the European game season and the Euro, we are now pursuing opportunities in the UK with value-added propositions. A major drive of this is our Pure South programme to increase outof-season chilled consumption—resulting in a more diverse market and currency mix. Our new venison plant at Lorneville will also create additional value for venison. T HE VALUE AND GLOBAL S C O P E OF OUR CO-PRODUCTS As part of our strategy, Alliance is committed to extracting additional value beyond the meat an animal provides. Co-products have the potential to make up to 15-20 per cent of the overall price paid for an animal, leading to greater returns for our farmers. We have more than 100 clients for co-products globally. This includes casings (all varieties of sausages—Alliance is the largest exporter of lamb and sheep casings in New Zealand and Australia), meal (pet food kibbles and stock feed for chickens and pigs), tallow (bio-diesel and soap), hides (upholstery for automotive and furniture, footwear, luggage, bags, belts and wallets), deerskins (handbags, wallets and garments), lamb skin wool-on (sheepskin rugs), lamb skin leather (garments and handbags), and sheep pelts (car chamois from the split and grains used for leather inlay in furniture, books and shoe linings). Our deer skins feature on luxury fashion brands, bobby calf skins on premium furnishings for Italian brands, and high-end ladies’ shoes. One million wool rug skins are exported each year with an additional one million wool-on skins exported and used for items such as paint rollers, linings for jackets and boots, car seat covers and futon covers for Japanese bedding.

BLO OD PRO CESSING YIELDS This year we developed blood processing facilities at our Pukeuri plant, a $700,000 investment, following similar investments at our Levin, Lorneville and Mataura plants. This facility collects and processes bovine blood into serum, which is sought after by the pharmaceutical industry for the development of vaccines, cancer treatments and drugs to treat neurodegenerative and endocrine disorders. The serum market is growing at five per cent per year and New Zealand is a key producer due to its largely disease-free status. The investment is part of our strategy to explore opportunities to add value and maximise returns to our farmer shareholders. The progress in this area has been encouraging with blood processing already adding meaningful revenue. PURE S OUTH L AMB FE ATURE S IN MAJOR CHINESE ONLINE SALES EVENT Pure South lamb featured at one of China’s major online sales events. The three-day online sales promotion was run through Tmall, a Chinese-language business-to-consumer online retail venture, operated by e-commerce giant Alibaba Group. Tmall is the largest business-toconsumer retail platform in Asia with almost 500 million users annually. Alliance was selected as a strategic partner and New Zealand’s only lamb producer for the promotion. Involvement in the promotion reflected Alliance’s reputation in China for producing high quality meat products, built on meticulous food production techniques, world class systems and a strong focus on consumer needs. HO G GE T INITIATIVE A pilot programme marketing hogget as a premium product in the UK food sector proved successful this year. The pilot was in response to requests from a number of farmer

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Profile for alliance12

Annual Report 2018  

Annual Report 2018