Alliance Group to invest US$4m in expanding its beef processing capacity

NEW ZEALAND – Alliance Group, a New Zealand-based food and solutions co-operative has announced that it will be investing US$4 million to expand its beef processing capacity in the South Island, New Zealand.

Alliance Group further revealed that it will be investing in its 18-month-old venison plant at Lorneville near Invercargill to enable the facility to additionally process cull cows during peak season.

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David Surveyor, chief executive of Alliance Group, said the investment is a key part of the co-operative’s beef growth strategy, adding that the expansions have been necessitated by increasing supply from farmers.

“This investment recognises that need for our farmers. It means we will be able to make a meaningful difference for our farmers by processing some cull cows at Lorneville and freeing up space at Mataura for prime steer, heifer and bull,” David said.

“It is also a win for deer farmers because we will be increasing our venison processing capacity at the Lorneville plant,” he added.

Alliance Group has been investing in strengthening its beef performance at its Mataura, Levin and Pukeuri plants, which according to information provided by the company, processed record numbers of cattle during the 2018-19 season.

“We are serious about delivering on our strategy of investing in maximising our operational performance to benefit farmer-shareholders and create a stronger co-operative,” says Mr Surveyor.

Surveyor noted that the beef expansion demonstrates the co-operative’s continued commitment to the Lorneville site. The Lorneville plant, which also includes ovine processing, is one of the largest sites in New Zealand, employing almost 2,000 people in total at peak capacity.

Surveyor also revealed that the company is planning additional investments to future-proof the operation and improve its long-term competitiveness.

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”The co-operative is also investing in the development of a premium beef portfolio, he says adding that the beef processing expansion at Lorneville should be in place by next season.

The co-operative has also been expanding internationally. Earlier this year, Alliance Group acquired 10.4% stake in its India partner QualityNZ, which supplies New Zealand’s products such as red meat, seafood and wine to India. In 2018, the co-operative also bought its Asia-based sales and distribution agent, which is now known as Alliance Asia.

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