Alliance chief executive David Surveyor said the Taste Pure Nature origin brand is also an example of how meat companies and the wider industry are working together for the common good, having earlier successfully co-operated on the chilled meat trial to China.
Developing the origin brand provided a valuable understanding of what is important to consumers and he agrees with the B+LNZ initiated pilot marketing programmes in China and the United States.
Having focused for three years on strengthening its balance sheet Alliance invested $50 million in the business in the past year.
Surveyor said the co-operative’s balance sheet needed strengthening and now that was done Alliance has embarked on a work programme that includes a new $15.2m venison plant at Lorneville and a new primal cutter at Dannevirke.
Three years ago Surveyor initiated a strategy designed to ensure the co-operative is true to its core principles, is operating efficiently and returning gains to its shareholders.
But cutting costs is only part of the equation and as part of its strategy Alliance has also been creating new value with the expansion and launch of branded products.
“The issue is how do you capitalise more and create more value from every animal you process.”
He described it as “a battle of the inches” constantly working away to find gains.
Alliance has since rolled out its Pure South and Silere brands, bought Alliance Asia, entered the food service business in the United Kingdom and last week launched premium branded beef, Pure South Handpicked 55-Day Aged Beef.
Looking ahead Surveyor said he cannot see anything on the horizon that will cause a significant collapse in product prices.
Lamb prices are at historic highs and while he could not see them rising much further there were no indications of a sudden softening.
Increased beef production in the US has created some uncertainty over future pricing but venison prices should remain strong.
Surveyor said the new processing plant being built at Lorneville is a vote of confidence in the sector and what he calls “a magnificent product”.
It should be ready for opening in August or September.
