There were plenty of smiles at the Alliance Group tent at the Christchurch Show yesterday.
The co-operative had just announced some good news for sheep and beef farmers – or at least those who are shareholders of Alliance.
It’s made an operating surplus of $42.1 million from a turnover of $1.5 billion for the year to September 30.
It will make an extra payment of $15m to its farmer shareholders based on the number of livestock they supplied. It will also pay a 5c full imputed dividend, worth $2.8m, based on share holdings and plans plans a bonus issue of 18.6 million shares.
Contrast that with Alliance’s biggest competitor Silver Fern Farms. It made a $43.6m profit but that included the one-off payment of $37m from PGG Wrightson in compensation for its failed merger bid and it’s not making any payout to suppliers.