“Alliance Group is the last major meat processor in New Zealand that is 100% farmer-owned. This deal would hand over majority control to Dawn Meats, a foreign entity with its own commercial priorities. Unlike Silver Fern Farms’ 50/50 model, this proposal gives Dawn Meats the power to dictate strategy, governance and investment decisions.

That means New Zealand farmers, who built Alliance from the ground up, would no longer have the final say in how their co-operative is run. The risk is clear: decisions could be made that prioritise offshore profits over local resilience.”

Read the full Farmers Weekly article here.

The facts you deserve before you vote – 11/10/2025

Once you vote “yes” there’s no going back. We all know what’s at stake; generations of farmer ownership, built and paid for by us. Alliance was founded by farmers who refused to let foreign meat companies like Dawn Meats – Vesty’s, Borthwick’s, and Weddel – dictate their future. It was built so we could control our own destiny, our own processing, and our own returns. Now, that independence – the very reason Alliance was created – is on the line again.

Let’s look at how we’ve reached this point and what we can still do about it.

How we got here

The proposed sale to Dawn Meats appears to have arisen from the board’s inability to carry our banking partners on the “right-size” journey required by falling stock numbers. Put simply, the banks have lost faith in the current board’s leadership.

This has resulted in a distressed-sale situation, following several years of poor performance and questionable decision-making:
1) Shareholder equity has collapsed by about 85% in just three years – the Northington Report values our shares at around $0.61 versus $4.20 in 2022.
2) $170 million has been spent on initiatives that have yet to deliver value:
a. $85m ERP system.
b. $35m Health & Safety programme.
c. $50m Smithfield closure
. We’re effectively being asked to sell the business to pay for its own failed investments.
3) The board’s handling of the capital request was disrespectful and opaque – a $4.00 per SU levy on farmers while engaging investment bankers offshore, instead of transparent consultation with shareholders.
4) The relationship with both banks and shareholders is strained, undermining confidence in the company’s governance.

Why the Dawn Meats deal doesn’t stack up

• Dawn Meats will control 65% of our cooperative, with board voting 3:2 in their favour.
• Their so-called “93% premium” buys them control, access to $134m of farmer capital, and minimal need to deal with us as suppliers.
• Tax losses of about $191m will be lost under this sale.
• Comparable sales of similar companies trade at 6–7× EBITDA, yet this deal sits around 4× – a discount sale.
• Listing shares on the USX offers an illusion of liquidity – as minority shareholders, we’ll have little voice, no dividends, and few willing buyers.

This is not a premium deal. It’s a transfer of control at a discount with no clear benefit to farmers.

Why retaining ownership still makes sense

This situation can be turned around – but only if shareholders take control of our company:
• Alliance remains New Zealand’s only 100% farmer-owned red-meat co-operative.
• The market for red meat is strong – demand and pricing are at record levels.
• With Smithfield closed, new systems in place and safety investments complete, operational improvements are showing results.
• The company delivered a profit in FY25 – proof that the underlying business is sound, even if governance is not.

Our plan to rebuild

With operational improvements beginning to deliver results this is the time to reshape the company for farmer control.
1) Reform governance. Conduct a shareholder-led review to ensure directors have the right skills, experience, and accountability.
2) Adopt a one-price policy for suppliers to restore fairness and strengthen loyalty.
3) Review the company’s structure and non-core assets. As highlighted in the OIO report approving Dawn Meats’ application, Alliance holds assets unrelated to processing or marketing (e.g. residential land). These should be assessed for divestment or redeployment to strengthen the core business.
4) Drive continuous improvement across the value chain – from processing efficiency to marketing execution. For example, beef-cutting performance still has unrealised potential that must be unlocked.
5) Invest beyond the farm gate (as the dairy sector has successfully done) to create enduring farmer value and brand strength.

Looking Ahead

The noise around lab-grown and Impossible Meat has faded. Red meat is here to stay and New Zealand farmers remain the best in the world at producing it. Now we must match that excellence in processing, branding, and marketing.

Our heritage matters. But our future will be determined by how we act now.

Let’s rebuild our co-operative. Not sell it.

Authors: James Anderson, Mark Gunton, Andrew Morrison, Dave Pinckney, Michael Wilkins

Sources: Northington Report, Alliance Group Limited Scheme Booklet, Alliance Group Limited FY24 Accounts

Sir David Carter: Alliance has questions to answer – 26/09/2025

“Co-op should have pressed for a better deal, says former ag minister. It did, counters current chair.”

Read the full Farmers Weekly article here.

Who are the Queally Group, the principal owner/controller of Dawn Meats?

“The majority of the group’s subsidiaries are unlimited, which means they do not have to file accounts, and thus offer great secrecy. The strategic use of tax havens such as the Isle of Man and Luxembourg also help to cloak the enterprise’s owners – and its true profits.

The Queally Group stands out for its astonishing secretiveness; every possible filing exemption has been made in order to avoid as much disclosure as possible, despite its being in receipt of very juicy grants from the Irish govt, the UK govt, and the EU.”  (WikiCorporates)

Read more about the Queally Group here.