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AGRIBUSINESS
18 AGRIBUSINESS ‘Doffing’ claim hits Alliance result
DAVID ANDERSON
AN HISTORIC employee entitlement claim of nearly $20 million severely dented meat processor Alliance Group’s annual result this year.
The company has announced an underlying profit of $27.4 million on turnover of $1.8 billion for the year ending elections after serving as a parliamen-
30 September 2020.
However, a $19.9m provision – relating to the historic employee entitlement claim – saw its annual profit drop to $7.5 million before tax.
The meat processor says it is trying to resolve the claim for “historic partial noncompliance for employee entitlements” – known as donning and doffing – with a proposal waiting for ratification by the New Zealand Meat
RULES IMPRACTICAL
ALLIANCE GROUP says it remains “concerned” about a range of government polices – including the incentivised afforestation of pastoral farmland.
“The government’s freshwater reforms will also have a major impact on farming across the country,” the co-op warns in its annual report.
“Aspects of these reforms appear poorly conceived, impractical for farmers and will not necessarily lead to improved environmental outcomes.”
Workers Union.
Alliance’s poor result means there will be no profit distribution to shareholders this year. Chair Murray Taggart says the result reflects the “challenging operating environment” for the company in 2020.
Despite this, he claims it was a “credible performance for the company” – given the disruption and volatility in global markets due to Covid-19.
“The co-operative has faced challenges on many fronts. Like many businesses, we have been impacted by the pandemic,” Taggart says.
“However, our farmers also experienced extreme weather including drought, snow and flooding in parts of the country and difficult growing conditions.
“These on farm challenges also flowed through to the co-operative.”
Chief executive David
Alliance chair Murray Taggart has described the past year as ‘challenging’.
Surveyor says the company’s response to these challenges was pleasing.
“We are proud of how our people across the business responded to the Covid-19 situation. Our people went above and beyond to deliver for our farmers, our customers and the country.”
He adds that while the season began with high protein prices for red meat, driven in part by African Swine Fever impacting the Chinese pig herd, there was a price correction as China took measures to curb protein inflation which reduced farm gate lamb prices.
“This was further compounded by the spread of Covid-19 across the globe and the resulting lockdowns, which resulted in people movement restrictions and massive disruption to the food service sector.”
Covid-19 also impacted Alliance’s processing operations with new operating protocols limiting capacity for farmers.
Surveyor says this year’s result excludes any money the company may be eligible for under the Government Wage Subsidy Scheme.
“Alliance and the Ministry of Social Development are currently working in a principled and constructive manner to resolve the amount Alliance is entitled to
“None of this amount will be recognised until discussions with the Ministry of Social Development are complete.”
He says the company has already returned money that was “not required for the purpose of retaining jobs and income.”
CARTER JOINS RURALCO BOARD
SUDESH KISSUN
sudeshk@ruralnews.co.nz
FORMER AGRICULTURE Minister and Banks Peninsula farmer David Carter has been elected to the board of rural trader, Ruralco.
Carter took up his directorship at the co-operative’s annual meeting last month, replacing former chairman Alister Body who stepped down after nine years on the board.
Carter, one of National’s longest serving MPs, retired at the last general retain,” he explains.
tarian for 26 years and in a number of National governments as a cabinet minister, including Agriculture Minister and Speaker of the House.
He says joining the Ruralco Board is a chance to offer his experience to his first passion—New Zealand agriculture.
“Ruralco has a unique history. I believe with good governance, good management, and a dedicated staff, it has the potential to deliver even greater benefits to its shareholders,”
Former agriculture minister David Carter.
he says. Ruralco, a farmer cooperative owned by Ashburton Trading Society (ATS), made a gross profit of $1.2 million from a group turnover of $241m last financial year.
For the third year in a row, the co-op paid its owners a bonus rebate. This year farmer owners received $250,000.
Ruralco chair Jessie Chan, speaking at the AGM, described Covid-19 as an unprecedented obstacle.
But she says the co-op attracted 68 new shareholders last year and increased its market share.
“Crisis does not change who you are – crisis reveals who you are. Covid-19 revealed a lot about us this year. We are agile, innovative, and willing to rise to the challenge,” said Chan.
She says Ruralco recognises that while the agricultural sectors are currently well placed despite the uncertainty created in the wake of Covid-19, the need to work collaboratively will remain at the forefront of all it does.
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