Early Bird I Thursday April 24th 2025

Alliance Group tracking back to profit amid capital search, farmers encouraged to plan ahead for winter grazing rules, and former Cantabrian makes world shearing history.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Alliance Group tracking back to profit amid capital search

Alliance Group is on track to return to profitability this financial year while continuing its hunt for fresh capital to restore its balance sheet. The red meat processor now needs north of $200 million, up from the initial $160 million sought, and is highly unlikely to remain a fully farmer-owned co-operative.

Nearly 12 months into its capital raise process, Alliance has benefited from improved market conditions and operational changes. Chair Mark Wynne reports the co-op has taken a real back to basics approach with cost reductions that have delivered well. The closure of the Smithfield site has helped Alliance enormously in balancing capacity with stock flows.

The processor has improved its cash conversion cycle and can now fund all capital expenditure from free cash flow. Inventory levels have been reduced by approximately 50% compared to the same time last year, down to $108.3 million from $152 million in 2023. Strong beef prices and recovering lamb markets have contributed to the improved outlook.

After reporting two consecutive annual losses and breaching loan covenants last year, Alliance is working against a September deadline set by its banking syndicate to deleverage its balance sheet. Wynne acknowledges that while all options remain on the table - including staying 100% farmer-owned, forming a hybrid joint venture, or selling the company - the first option is now highly unlikely given the quantum of money needed and limited timeframe.

The company has received multiple non-binding indicative offers from domestic and international players and is conducting due diligence. Alliance hopes to present a deal for shareholder vote by late July, with any agreement likely requiring regulatory approval.

 

New feed combo tackles dairy methane emissions

 

University of Florida researchers are testing a groundbreaking cattle feed supplement combining flaxseed and pea protein that could significantly reduce methane emissions.

The supplement's key ingredients - flaxseed and pea protein - are rich in omega-3 fatty acids and high-quality proteins that appear to alter rumen fermentation. When tested in laboratory simulations of dairy cattle digestion, this ingredient combination reduced methane production while improving overall digestive efficiency.

Researchers believe these specific plant-based ingredients work together to change how fermentation occurs in the cow's digestive system. By reducing methane production during digestion, more energy remains available in the cow's body rather than being lost as greenhouse gas emissions through burps and flatulence.

The research team plans to move beyond laboratory testing to field trials, feeding dairy cows the flaxseed and pea protein supplement to confirm whether the promising laboratory results translate to real-world farming conditions.

 

Farmers encouraged to plan ahead for winter grazing rules

Environment Southland is encouraging Southland farmers to have clear plans in place and ensure their entire farm team understands the regulations as the winter grazing season approaches. 

General manager regulatory services Hayley Fitchett acknowledges Southland farmers are familiar with wet, cold winter conditions and should prepare for potential weather changes despite predictions for normal rainfall and average temperatures. 

Early a