KEY POINTS:
The medium-term outlook for sheepmeat and beef is looking good with strong demand and falling supply, says processor co-operative Alliance Group. The Southland firm posted revenue of $1.3 billion for the year ending September 30, up from $1.1 billion the previous year.
Operating profit before shareholder distributions was $67.9 million, up from $16 million the previous year.
Chairman Owen Poole said the result maintained the company's reputation for making consistent profits.
Sheep farmers have faced three years of low returns, while animal numbers dropped 11 per cent in the year ended June 30 to 34.2 million after drought and the expansion of dairying.
The key issue for the industry was to increase returns to sheep, cattle and deer farmers, to restore confidence in livestock farming, Alliance said.
An objective the company said was more challenging because of the expectation of widespread recession.
