It will be working to get a better offer in the market this season but there will not be an overnight fix.
“We need to get the price to a point where its profitable for us and for farmers,’’ he said afterwards.
The co-operative’s beef suppliers are loyal but it is important to be frank with the owners about the issues.
It plans to increase chilled beef exports to China and move up the value chain.
Staff are working on a computer model to identify cuts for maximum value.
The company is competitive in the manufacturing beef market.
Scale in the beef market has been an issue for Alliance with just an 8.64% share of the United States beef quota, making it sixth biggest of the New Zealand processors.
That is at odds with its number one position on the European Union sheep meat quota where it has a 27.68% share.
Surveyor said Alliance is operating more like a farmer-owned co-operative in the venison market.
Prices are strong and both the company and farmers are making money.
Venison prices are expected in the $11/kg to $11.74/kg range in the next three months, easing to $10.40/kg to $11/kg after Christmas, livestock and shareholder services general manager Heather Stacy said.
Cattle prices are expected in the $4.80/kg to $5.50/kg range over the next six months or so with cows slipping from about $4/kg to the high-$3s.
