Alliance $18.3m up for half-year

Southland meat processor Alliance yesterday produced further evidence of good times down on the farm, reporting a bumper half-year profit of $18.3 million.

That compared with $2.3 million in the six months to March 31, 2000.

Turnover was $557 million, a 38 per cent rise on last year.

Alliance said the result was influenced by significantly higher throughput volumes for all species.

The benefits of the plant reconfiguration programme completed in 2000 also affected the result.

The improved quality and higher average weight of livestock supplied to the company helped plant efficiencies and allowed increased levels of processing.

Chief executive Owen Poole said that BSE and foot-and-mouth disease outbreaks had reduced consumption of beef and sheepmeat in Britain and several European countries.

Despite the impact of the ban on export of sheepmeat from the UK, the supply and demand fundamentals for sheepmeats remained sound, he said.

Venison had been a significant beneficiary of the disease outbreaks, with unprecedented demand, outside the "game season," at increased price levels.

Alliance said its new sheep and lamb plant at Nelson began processing in last November and, despite some inevitable commissioning problems, was operating satisfactorily.

- NZPA