Thursday, March 28, 2024

Alliance Group boosts investment in venison

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Alliance has revised its plans for Lorneville and will now build a new venison processing facility.
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The co-operative had unveiled plans to refurbish the beef building at Lorneville, near Invercargill last year.

The new $15.2 million plan includes design innovations, improved handling facilities, enhanced configuration, increased slaughterboard size, a wider boning room and an increased offal area. The plant will also be capable of accommodating technological developments when they become available.

Alliance chief executive David Surveyor said “This greater investment reinforces the co-operative’s commitment to the New Zealand deer industry and will ensure we have world-class modern facilities, reflecting our position as a leading and innovative processor”.

“It also demonstrates the company is continuing to deliver on our strategy of investing in the future, lowering our cost base and delivering higher returns to our farmer shareholders.”

Surveyor said the decision shows Alliance’s confidence in the deer industry.

“While the New Zealand venison market has traditionally depended on Germany and the European game season and the euro, Alliance Group is now moving into the US and UK markets with value added propositions.

“A major driver of this is our Pure South programme to increase out of season chilled consumption, coupled with a general growth in seasonal chilled venison – resulting in a more diverse market and currency mix.”

The new processing facility is expected to be operational next year. In the meantime, deer will continue to be processed at Alliance’s Makarewa plant near Invercargill and Smithfield plant in Timaru.

The Smithfield plant will remain a vital part of Alliance Group’s venison processing operations, Surveyor said.

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