Ag 14 october, 2015

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Wednesday, Oct 14, 2015

Since Sept 27, 1879

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THE INDEPENDENT VOICE OF MID CANTERBURY

Doing it for the animals

Bowler adds new skills

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Walkway network growing After 10 years in the planning, Ashburton’s walkways are slowly being turned into a growing network.

FULL STORY

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PHOTO TETSURO MITOMO 121015-TM-090

We ‘don’t need SFF’ BY NADINE PORTER

NADINE.P@THEGUARDIAN.CO.NZ

The Alliance Group chief executive delivered his strongest message yet to those that still want to see a merger in the meat industry when he said his co-operative didn’t need Silver Fern Farms. Speaking in Ashburton yesterday to a small group of farmers as part of the meat giant’s roadshow David Surveyor said the co-operative had looked at the question of a merger/acquisition of SFF

but didn’t think it would transform the shape of their company. “And quite frankly the price they (Shanghai Maling) are paying is not a price that we would be paying.” Mr Surveyor’s tactile assessment comes after a flurry of last-minute lobbying to persuade SFF suppliers to vote against the Chinese offer that would see them pay $261 million to the financially strapped co-operative in return for a 50 per cent ownership.

However Mr Surveyor said Alliance’s new strategies going forward would ultimately offer more value to farmers than any merger with SFF would. He reiterated Alliance’s commitment to its farmers and the original co-operative principles the business was founded on, citing last year’s drought, where excess stock was culled. While other meat businesses refused to take the stock from their farmers because they didn’t want to carry the inventory risk, Alliance made a con-

scious decision to buy all stock in order to support shareholders despite it significantly impacting on their financial performance. “We would have had a better result if we hadn’t taken the risk.” He reiterated a core principle of the co-operative to give shareholders pricing and total returns that were greater than those available from any other processor long term, and outlined plans to increase returns to farmers by $0.58 to $0.80

cents per kilogram by 2018. Plans include $15 million to be invested in primal/middle cutting technology in Smithfield and Pukeuri plants that is the first of its type worldwide. The machinery will save up to $3 per carcass because of the accuracy of assessing where to cut in varying carcass sizes.

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Weather: High 17˚ - Overnight 6˚ Page 22

Puzzles: Page 21

Television: Page 23

Entrance off Racecourse Rd, Ashburton

Family Notices: Page 22

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