October 2, 2025 • 9 mins
Don Morrison says the Alliance Roadshows has been well received over the past week.
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Episode Transcript
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Speaker 1 (00:06):
Don Morrison is a Willowbank farmer and alliance for director
joins us this afternoon on this it was a beautiful
afternoon and good how are you good afternoon? How's everything
out your way?
Speaker 2 (00:16):
Oh? Cider? Andy? Hey, look the food fighters say this
is the best day to be a shepherd. This is no, no,
really enjoying it. The news eventually finished, and the hogits
are really just getting busy, so we'll we'll take a
good day and enjoy it.
Speaker 1 (00:30):
Eh, Well, this is how spring is supposed to be.
Speaker 2 (00:32):
Howie, Hey, Well, I don't know. Yeah, you're right. Well, hey,
I'm pretty lucky. You know, he's been back a couple
of years, and so far he hasn't enjoyed a good lambing.
So you get some days like this and you can tell, hey,
this is how good it can be.
Speaker 1 (00:46):
So you're under the hogots now. The main flock's pretty
much done.
Speaker 2 (00:50):
Yeah. Look that only might be less than two hundred
years ago. So and we're just getting them are bunched
up into a couple of paddocks today, which I'll make
it easy. And the hoggits are now spread out and
they're they're actually lamming really quickly. Andy, and some nice
sized lambs. I guess you always get a good fix
on on new condition, on what the you know the
with with your scanning and new condition, what you what
(01:12):
your lambs from your using and to be like your hoggits,
that can be a bit variable. So we're getting some
nice sized lambs, not too big in the singles, but
go back good enough to get some decent sized twins
as well.
Speaker 1 (01:23):
You'll just be a bit tight for feed at the moment.
Speaker 2 (01:26):
Look, I wouldn't say any tighter than other years. We'd
like it to grow. And I guess the good headstart
was that all the animals are in really good condition,
and even some of those paddocks that are looking a
bit a bit gray, you know, shedding off. It's hard
to tell the difference between what's lambs and what hasn't lambs.
So the us are really really looking good and you
know the grass will come.
Speaker 1 (01:47):
How are the Alliance road show meetings they've concluded though?
How this week? I caught up with you briefly on Wednesday,
even on Tuesday evening, sorry, after the Gore event. There
was a big churning out of farmers there. From your perspective,
how do you think it.
Speaker 2 (02:00):
All we I've gore was a really big turnout, which
was great. You know, we want people to show an
interest in a passion and their co op. You that
was number see what number was that? That was number fact.
So so far i'd done nine. We've got twenty four
to go. Andy, so we've got three weeks of it
traveling the country. Hey, look, I think it's going well
(02:20):
in that Mark Mark when they're chair and Villi Visa
CEO are delivering a really good message on you know,
how we got there, what the imperative is, why we've
had to make this decision, the process to get to that,
and then actually the really the really good things about
this proposal, both in terms of a financial outcome, but
(02:42):
just as importantly a strategic helped come. And I know
it does change the structure of the co op, but
we've also got to move forward, and we don't we're
not looking to survive. We've actually got to thrive and
this is what there some proposal is going to let
us do. So so you know it said the ananimous
recommendation from the board that we are that we support
the decision with a yes vote, and you know, we've
(03:03):
now got to move towards that and just see Alliance
moving to its next stage.
Speaker 1 (03:08):
One concerned though I've heard how he is pumping more
money and it's not going to do anything structurally for
the company in the long term.
Speaker 2 (03:14):
Well, structurally, it does make a difference, Andy, because you've
got you've got a strategic partner with a real proven
record in markets. It gives us access to those and
we can compliment them with their strength in our markets.
But what it does is strengthen the balance sheet. And
I look back over the last ten years when we've
been competing with a weakened balance sheet compared with our
(03:36):
you know, other three major competitors, and a lot of
the pricing decisions competitiveness has all been influenced by that
equity structure where our balance sheet hasn't got strong enough.
You know, was it inevitable we got to this position?
I think, you know, we've had those couple of bad
years with lower profits after nine years of increasing profits,
But you know, the issue was there that we had
(03:58):
to recapitalize and if our farmer shareholders aren't prepared to
do that, we had to look elsewhere. And with saying that, Andy,
I totally recognize the pressure that our farmer shareholders have
been under and while over the last one year, two years,
or the last ten years, they've actually been reluctant to
recapitalized because that money is more important on their own farm,
(04:20):
for debt repayment, for R and M. So I totally
get that.
Speaker 1 (04:25):
Has that been the biggest frustration from shareholders that you've gathered,
How he'd just that has got to the stage?
Speaker 2 (04:32):
I think it's a matter of understanding how we got
to the stage. And I guess when you went through
those years of success of increasing profit, there may have
been a belief that we'd return the corner. A lot
of that, to a certain extent, was our markets rise.
You know, profits can rise, and then we hit those
two big years of correction, and that's the reality the
(04:54):
volatility in this market. But if you look back over
the last ten or fifteen years of Alliance's profit, it's
it's actually rarely modest for the for the size of
our revenue, the size of our business. So we've got
to make a change, and this, this capital and is
what will allow us to make that change.
Speaker 1 (05:11):
And that's probably the other thing as well. A lot
of people saying, well if this doesn't go through what's
the other option? But then we talk about the way
kaya five as have been named. Of course, one of
those people involved, you know pretty well, what do you
make of us offer?
Speaker 2 (05:23):
Though?
Speaker 1 (05:23):
Do you think these merits and what they're trying to do?
Speaker 2 (05:26):
Look, the first thing is Andy, you respect the view
of every shareholder, and they have a different view on
what could be achieved, and they have a view that
comes from the right space, you know, So I respect
the aspiration of what could be achieved. And also there
you know, the loyalty to the co op, what they've
gone out and said about management and board and what
(05:47):
it's been able to achieve in terms of a turnaround. Hey,
it's a great sentiment, but I just don't think there's
any reality in it. We as a we as a
board have investigated every opportunity for recapitalization thereafter, and quite
clearly every shareholder doesn't want to commit greater capital to
the co op. And if every shareholder doesn't, that means
(06:10):
those that have to put more and more. And I
don't see an equitable situation when you can do that
when some does and some won't. But the reality is
we have to pay that debt back by the nineteenth
of December, so in the time frame I believe what
they're saying is completely unrealistic.
Speaker 1 (06:27):
Do you think this could be the defining moment for
the red meat sector looking forward for the country?
Speaker 2 (06:32):
How we No, I don't believe it will. Andy. I
think it'll be a defining moment for Alliance. And you know,
we've been getting a lot of questioning on co op status.
You know, hindsight, it's a great thing. Foresight, it's interesting
to Andy, and maybe in a number of years people
might look back and say this was a pivotal turning
point for the co op. But the trouble is, you
(06:54):
know that over capacity still exists in the industry. This
yes vote will care of us with strong capital, with
the right sized business, so as we have to address
over capacity. We an Alliance are in a really good
position with their with our kill networks, species species breakdown.
But still the problems for the industry are there and
(07:15):
they will continue to be. You know, possibly another six
to eight plants have to close in New Zealand. No
one wants to do it because it costs money, as
we demonstrated with making that right decision with smith Field so.
Speaker 1 (07:27):
You're pretty confident that this will go through.
Speaker 2 (07:30):
Well, look, confidence is not the word i'd use it,
and it's to me. To me, you know, with our
unanimous decision, what we know, it's absolutely imperative that it
goes through if you want to see a continued alliance
and a strengthen alliance. And that's not only in terms
of shareholder value, that's the job for all of our
that's you know, for the for the jobs of all
(07:50):
our salaries and employee staff as well. So I think
it's really important. So all we can do is really
push intelligently how we got there, what steps have been
to address, and what the opportunity is going forward if
you support with that year's vote.
Speaker 1 (08:08):
Just finally, the big question of the all back's going
to get the business over the Wallabies this weekend?
Speaker 2 (08:13):
Uh are you talking about confidence? Andy, I wouldn't be confident.
And I think if I think you've got to strengthened,
I think you've got to strengthen Wallaby's forward pack. You know,
home home home advantage is all it's important. And they've
got a belief they can win. So despite their last
Vale absolutely have a belief they can win. So yeah,
(08:34):
Let's see how it goes.
Speaker 1 (08:35):
Are you going to survive until sillier clock? I think
caught it to eleven's kickoff time.
Speaker 2 (08:39):
Don't survive much after nine o'clock on these lemming nights
at the best of time, Andy, So I might need
a bit of fortitude to make the eleven o'clock. I think, Hey,
good on you.
Speaker 1 (08:49):
How we will let you carry on, but we do
appreciate it coming on like you do.
Speaker 2 (08:52):
Yeah, oh good cheers Andy.
Speaker 1 (08:56):
Don Morrison, Willowbank farmer and the Lions board director listening
to the muster Phil Duncan of Willow Watch. We catch
up next to see the Southern forecast what's happening over
the next seven days
Don Morrison is a Willowbank farmer and alliance for director
joins us this afternoon on this it was a beautiful
afternoon and good how are you good afternoon? How's everything
out your way?
Speaker 2 (00:16):
Oh? Cider? Andy? Hey, look the food fighters say this
is the best day to be a shepherd. This is no, no,
really enjoying it. The news eventually finished, and the hogits
are really just getting busy, so we'll we'll take a
good day and enjoy it.
Speaker 1 (00:30):
Eh, Well, this is how spring is supposed to be.
Speaker 2 (00:32):
Howie, Hey, Well, I don't know. Yeah, you're right. Well, hey,
I'm pretty lucky. You know, he's been back a couple
of years, and so far he hasn't enjoyed a good lambing.
So you get some days like this and you can tell, hey,
this is how good it can be.
Speaker 1 (00:46):
So you're under the hogots now. The main flock's pretty
much done.
Speaker 2 (00:50):
Yeah. Look that only might be less than two hundred
years ago. So and we're just getting them are bunched
up into a couple of paddocks today, which I'll make
it easy. And the hoggits are now spread out and
they're they're actually lamming really quickly. Andy, and some nice
sized lambs. I guess you always get a good fix
on on new condition, on what the you know the
with with your scanning and new condition, what you what
(01:12):
your lambs from your using and to be like your hoggits,
that can be a bit variable. So we're getting some
nice sized lambs, not too big in the singles, but
go back good enough to get some decent sized twins
as well.
Speaker 1 (01:23):
You'll just be a bit tight for feed at the moment.
Speaker 2 (01:26):
Look, I wouldn't say any tighter than other years. We'd
like it to grow. And I guess the good headstart
was that all the animals are in really good condition,
and even some of those paddocks that are looking a
bit a bit gray, you know, shedding off. It's hard
to tell the difference between what's lambs and what hasn't lambs.
So the us are really really looking good and you
know the grass will come.
Speaker 1 (01:47):
How are the Alliance road show meetings they've concluded though?
How this week? I caught up with you briefly on Wednesday,
even on Tuesday evening, sorry, after the Gore event. There
was a big churning out of farmers there. From your perspective,
how do you think it.
Speaker 2 (02:00):
All we I've gore was a really big turnout, which
was great. You know, we want people to show an
interest in a passion and their co op. You that
was number see what number was that? That was number fact.
So so far i'd done nine. We've got twenty four
to go. Andy, so we've got three weeks of it
traveling the country. Hey, look, I think it's going well
(02:20):
in that Mark Mark when they're chair and Villi Visa
CEO are delivering a really good message on you know,
how we got there, what the imperative is, why we've
had to make this decision, the process to get to that,
and then actually the really the really good things about
this proposal, both in terms of a financial outcome, but
(02:42):
just as importantly a strategic helped come. And I know
it does change the structure of the co op, but
we've also got to move forward, and we don't we're
not looking to survive. We've actually got to thrive and
this is what there some proposal is going to let
us do. So so you know it said the ananimous
recommendation from the board that we are that we support
the decision with a yes vote, and you know, we've
(03:03):
now got to move towards that and just see Alliance
moving to its next stage.
Speaker 1 (03:08):
One concerned though I've heard how he is pumping more
money and it's not going to do anything structurally for
the company in the long term.
Speaker 2 (03:14):
Well, structurally, it does make a difference, Andy, because you've
got you've got a strategic partner with a real proven
record in markets. It gives us access to those and
we can compliment them with their strength in our markets.
But what it does is strengthen the balance sheet. And
I look back over the last ten years when we've
been competing with a weakened balance sheet compared with our
(03:36):
you know, other three major competitors, and a lot of
the pricing decisions competitiveness has all been influenced by that
equity structure where our balance sheet hasn't got strong enough.
You know, was it inevitable we got to this position?
I think, you know, we've had those couple of bad
years with lower profits after nine years of increasing profits,
But you know, the issue was there that we had
(03:58):
to recapitalize and if our farmer shareholders aren't prepared to
do that, we had to look elsewhere. And with saying that, Andy,
I totally recognize the pressure that our farmer shareholders have
been under and while over the last one year, two years,
or the last ten years, they've actually been reluctant to
recapitalized because that money is more important on their own farm,
(04:20):
for debt repayment, for R and M. So I totally
get that.
Speaker 1 (04:25):
Has that been the biggest frustration from shareholders that you've gathered,
How he'd just that has got to the stage?
Speaker 2 (04:32):
I think it's a matter of understanding how we got
to the stage. And I guess when you went through
those years of success of increasing profit, there may have
been a belief that we'd return the corner. A lot
of that, to a certain extent, was our markets rise.
You know, profits can rise, and then we hit those
two big years of correction, and that's the reality the
(04:54):
volatility in this market. But if you look back over
the last ten or fifteen years of Alliance's profit, it's
it's actually rarely modest for the for the size of
our revenue, the size of our business. So we've got
to make a change, and this, this capital and is
what will allow us to make that change.
Speaker 1 (05:11):
And that's probably the other thing as well. A lot
of people saying, well if this doesn't go through what's
the other option? But then we talk about the way
kaya five as have been named. Of course, one of
those people involved, you know pretty well, what do you
make of us offer?
Speaker 2 (05:23):
Though?
Speaker 1 (05:23):
Do you think these merits and what they're trying to do?
Speaker 2 (05:26):
Look, the first thing is Andy, you respect the view
of every shareholder, and they have a different view on
what could be achieved, and they have a view that
comes from the right space, you know, So I respect
the aspiration of what could be achieved. And also there
you know, the loyalty to the co op, what they've
gone out and said about management and board and what
(05:47):
it's been able to achieve in terms of a turnaround. Hey,
it's a great sentiment, but I just don't think there's
any reality in it. We as a we as a
board have investigated every opportunity for recapitalization thereafter, and quite
clearly every shareholder doesn't want to commit greater capital to
the co op. And if every shareholder doesn't, that means
(06:10):
those that have to put more and more. And I
don't see an equitable situation when you can do that
when some does and some won't. But the reality is
we have to pay that debt back by the nineteenth
of December, so in the time frame I believe what
they're saying is completely unrealistic.
Speaker 1 (06:27):
Do you think this could be the defining moment for
the red meat sector looking forward for the country?
Speaker 2 (06:32):
How we No, I don't believe it will. Andy. I
think it'll be a defining moment for Alliance. And you know,
we've been getting a lot of questioning on co op status.
You know, hindsight, it's a great thing. Foresight, it's interesting
to Andy, and maybe in a number of years people
might look back and say this was a pivotal turning
point for the co op. But the trouble is, you
(06:54):
know that over capacity still exists in the industry. This
yes vote will care of us with strong capital, with
the right sized business, so as we have to address
over capacity. We an Alliance are in a really good
position with their with our kill networks, species species breakdown.
But still the problems for the industry are there and
(07:15):
they will continue to be. You know, possibly another six
to eight plants have to close in New Zealand. No
one wants to do it because it costs money, as
we demonstrated with making that right decision with smith Field so.
Speaker 1 (07:27):
You're pretty confident that this will go through.
Speaker 2 (07:30):
Well, look, confidence is not the word i'd use it,
and it's to me. To me, you know, with our
unanimous decision, what we know, it's absolutely imperative that it
goes through if you want to see a continued alliance
and a strengthen alliance. And that's not only in terms
of shareholder value, that's the job for all of our
that's you know, for the for the jobs of all
(07:50):
our salaries and employee staff as well. So I think
it's really important. So all we can do is really
push intelligently how we got there, what steps have been
to address, and what the opportunity is going forward if
you support with that year's vote.
Speaker 1 (08:08):
Just finally, the big question of the all back's going
to get the business over the Wallabies this weekend?
Speaker 2 (08:13):
Uh are you talking about confidence? Andy, I wouldn't be confident.
And I think if I think you've got to strengthened,
I think you've got to strengthen Wallaby's forward pack. You know,
home home home advantage is all it's important. And they've
got a belief they can win. So despite their last
Vale absolutely have a belief they can win. So yeah,
(08:34):
Let's see how it goes.
Speaker 1 (08:35):
Are you going to survive until sillier clock? I think
caught it to eleven's kickoff time.
Speaker 2 (08:39):
Don't survive much after nine o'clock on these lemming nights
at the best of time, Andy, So I might need
a bit of fortitude to make the eleven o'clock. I think, Hey,
good on you.
Speaker 1 (08:49):
How we will let you carry on, but we do
appreciate it coming on like you do.
Speaker 2 (08:52):
Yeah, oh good cheers Andy.
Speaker 1 (08:56):
Don Morrison, Willowbank farmer and the Lions board director listening
to the muster Phil Duncan of Willow Watch. We catch
up next to see the Southern forecast what's happening over
the next seven days
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