October 15, 2025 • 9 mins
Riley Kennedy of Business Desk looks next Monday's SGM for Alliance Group regarding the Dawn Meats proposal.
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Episode Transcript
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Speaker 1 (00:04):
Some one whose maybe laughing is the reason you can
love yourself before Welcome back to the Master. Riley Kennedy
joins us out of business desk. He's been all over
this proposal regarding Dawn Meats and Alliance. Of course it
comes to a head this Monday, Riley, good afternoon, Monday
is d Day, very.
Speaker 2 (00:25):
Good as no, yes, it is at the Scott Hotel
and the Vicagoo. It's been a long process to get
to this point, but we're nearly there.
Speaker 1 (00:34):
It's been a long process, and it's been a messy
process if we're honest.
Speaker 2 (00:39):
Yeah, yeah, I mean, it hasn't been the most cleanest process.
But I don't think, I mean, the Alliance board would
would tell you that this isn't their preferred option. They've
been very clear all along that they didn't want to sell. Ultimately,
it was it's the banks that have that that that
are running the show. You know, they're not running it entirely,
(01:01):
but they have the ultimate say and they want me
money back, which is fair enough, and they have to
pay back the one hundred and eighty eight million or
whatever it is.
Speaker 1 (01:10):
So based on what you've seen, rightly, just how detrimental
would have been to the meat industry and to the
meat industry. If it's a no vote, yeah, well some.
Speaker 2 (01:20):
I would say that a no vote is probably good,
you know, take out excess capacity. But also you've got
to look at it from an industry. When we sell
all more, most of a red meat goes out ofseas, right.
We pride ourselves on having grout sed meat. If we
can't run a process or and a process of falls
into some sort of insulty process, it's not exactly a
(01:40):
great look for us on the world stage. And you
just don't want i mean being solventy in the stre
I'm sure they nice people, but you don't want them
running out process includ in New Zealand.
Speaker 1 (01:53):
Do you ultimately can they survive a no vote in
your opinion, Well.
Speaker 2 (01:58):
They've got to pay back the money. Then they have
to pay back the working capital facility.
Speaker 1 (02:03):
So that.
Speaker 2 (02:05):
Is the ultimate and that will ultimately end up in
the bank's hand. If there's a no vote, that the
banks are in charges of Tuesday essentially and they'll be
running the show that they have. The ultimates say they
could put blunt up, so they could they could do
anything they like within reason. They could put it into
(02:25):
receivership as of Tuesday, it's up to them that they've
got a deadline of nineteen December to get the money
in and be paid. But ultimately, whatever happens, if the
no vote.
Speaker 1 (02:36):
Is up, then there's a concern around Dawn Meats as well,
but this can just be viewed as a short term
face yearly, you could.
Speaker 2 (02:43):
Have said that about Shanghai Nailing or Bright Meat and
silver and Farms. I mean, Dawn Meats are pretty sharp
operators in the UK. I don't know them. I don't
know them at all, but ultimately the one they're the
only ones right now with a credible offer on the
table to pay the money. That that is the end
(03:03):
goal or the bottom line of this is that they
need that money to be repaid.
Speaker 1 (03:09):
Right And do you think they still hope for a
remat super cooperative collaboration between likes of Silver Ferns and Alliance, Well,
I mean.
Speaker 2 (03:19):
There's a lot of talk in the industry about how
all the processes need to work together, but I mean
nobody's put their hand up to do it just yet.
Then they're all open to working together, but no one
actually seems to get round the table and if they
start working together too much, then you sort of fall
into cartel concerns with the Communis Commission. So I think
(03:39):
it's a very interesting position that we're in and I
think the next few years at a process level, it's
going to be really interesting to see it or wash
it out. And if you read the Independent Norbington report
that Norbington Partners did on the alliance, still it lays
out very clearly that New Zealand has too many we
have an excess capacity, particularly in cheap net processing. There's
(04:00):
in South End, there's arm at the moment, you know,
I can think about five ofs of my head. I
was looking at the map the other day. We have
nearly fifty five processing plants in New Zealand and we've
we've got half the ship that we did twenty years.
Speaker 1 (04:13):
Ago, and that's a great concern going forward as well. Riley.
A lot of shareholders I've spoken to us saying egos
need to be left at the door and we need
to fix the industry.
Speaker 2 (04:21):
Yeah, yeah, I think that there's there's obviously and right
there said there's a lot of emotion about the about
the last farmer owned, fully farmer owned cooperative being sold.
But at the end of the day, I think everyone
just wants to be paid a good price and when
they stopped collected, and whether that's owned by a foreign company,
(04:45):
it's owned by his own company, or it's owned by farmers,
you know, I think they're those concerns probably need to
be left at the door now and work out a
credible way forward, because you don't want the last man's standing,
you don't want to be you don't want receivers in
all New Zealander and meat processes, which I'm not saying
that's going to happen, but just a terrible scenario, particularly
(05:05):
at a time when fun get prices at record levels.
Speaker 1 (05:10):
The so called white KaiA five of their counter offer,
was this too little, too late, like maybe six to
twelve months ago, This might have been a bit more credible.
Speaker 2 (05:17):
Perhaps, Yeah, again, you need the bank support, which they
don't have. And so it's all very well and good
coming out with this proposal, and I'm more than entitled
to him to do this, but you ultimately need the
bank support. So and then the meetings in five days.
(05:40):
So they should have done this twelve months ago, when
the alliance's issues have not come around in the past
six weeks. I saw it being called as a credible
option the other day. I mean it is, but the
net profit figures of one hundred and fifty million, I mean,
it was just quite frankly, in my opinion, it's just bizarre.
(06:00):
I mean, we've never seen a processor at that level
of profitability and less than the plus five years. I
think Self Informed actually might have greached at level in
twenty twenty two, but then they've reported two losses. So
it's just I mean, they're more than entitled to do that,
but they should have done it twelve months ago when
(06:21):
there was more time.
Speaker 1 (06:23):
Okay, Riley, if you're a bidding man, would you have
the yard set at one eighty seven? Either way?
Speaker 2 (06:28):
I would, I wouldn't want to say, but I think
the crucial thing is that people have got to vote.
You know, there's a bit of talk at the moment
about and people aren't going to vote. I mean, at
the end of the day, shareholders own the company as
the company, and so in my opinion would be, you've
just got to go out and vote and then don't
let it turn out like the local elections and have
(06:50):
a turnout of thirty nine percent. Or something across them
would actually fail if it was that level. But I
think the crucial thing is either way, if he supported him,
you've just got to go and vote.
Speaker 1 (07:02):
Just finally, Riley, there's been a bit of upheaval that
the top rats of PGG writes them, yes.
Speaker 2 (07:07):
This this is this is this hugely interesting. I mean
PGG writs from have had their governance issues for a while.
You know, every now and again there's something that just
sort of happens. But I was flying to Cargole on
on Tuesday and their annual meeting was it was in
christ Church and I thought, I'm not going to watch
(07:28):
their annual meeting. You know, they seemed to have sort
of theirshes out and the land is named the Cargo
and the famous blowing up and Agria the largest shareholder
and Elders which people will be familiar with. It's the
South Australian Real Service assume had turned on Gary Moore
the chair and Sarah Brown the deputy chair from from
them the Cargo and voted them out. The just complete
(07:51):
shop turned on them.
Speaker 1 (07:53):
Why is that? What's going on?
Speaker 2 (07:55):
Nobody, nobody really knows. There's two days on that there
was a statement to the ins ofex Magria about an
hour ago, which said, you know, we see this as
an opportunity to refresh the board. But they've they've nobody
has given any light as to why they've done with
Gary Moore than our former chair job he's jobless. He
(08:17):
met with Ala May of Akria on Friday and Alan
said you're doing a great job. You know we'll support
you and don't expect any surprises. Then, apparently the meeting
in christ Church was very bland is how Gary described it.
He was working hard to even extract questions from the floor.
Then he went off I think, had a cup of
tea and had a tap on the shoulder telling him
that he'd been voted out.
Speaker 1 (08:39):
Interesting times. Riley Kennedy, keep up the fantastic work at
Business Desk. Appreciate your time as always.
Speaker 2 (08:44):
Thanks Andy, You is not the one man.
Speaker 1 (08:48):
Riley Kennedy of Business Desk. All Roads lead in Vacago
next Monday. Regarding this Alliance special meeting. This is the
master up next MP Joseph Mooney, this talk about the
passing of SM Jim Bolgia, show me everything
Some one whose maybe laughing is the reason you can
love yourself before Welcome back to the Master. Riley Kennedy
joins us out of business desk. He's been all over
this proposal regarding Dawn Meats and Alliance. Of course it
comes to a head this Monday, Riley, good afternoon, Monday
is d Day, very.
Speaker 2 (00:25):
Good as no, yes, it is at the Scott Hotel
and the Vicagoo. It's been a long process to get
to this point, but we're nearly there.
Speaker 1 (00:34):
It's been a long process, and it's been a messy
process if we're honest.
Speaker 2 (00:39):
Yeah, yeah, I mean, it hasn't been the most cleanest process.
But I don't think, I mean, the Alliance board would
would tell you that this isn't their preferred option. They've
been very clear all along that they didn't want to sell. Ultimately,
it was it's the banks that have that that that
are running the show. You know, they're not running it entirely,
(01:01):
but they have the ultimate say and they want me
money back, which is fair enough, and they have to
pay back the one hundred and eighty eight million or
whatever it is.
Speaker 1 (01:10):
So based on what you've seen, rightly, just how detrimental
would have been to the meat industry and to the
meat industry. If it's a no vote, yeah, well some.
Speaker 2 (01:20):
I would say that a no vote is probably good,
you know, take out excess capacity. But also you've got
to look at it from an industry. When we sell
all more, most of a red meat goes out ofseas, right.
We pride ourselves on having grout sed meat. If we
can't run a process or and a process of falls
into some sort of insulty process, it's not exactly a
(01:40):
great look for us on the world stage. And you
just don't want i mean being solventy in the stre
I'm sure they nice people, but you don't want them
running out process includ in New Zealand.
Speaker 1 (01:53):
Do you ultimately can they survive a no vote in
your opinion, Well.
Speaker 2 (01:58):
They've got to pay back the money. Then they have
to pay back the working capital facility.
Speaker 1 (02:03):
So that.
Speaker 2 (02:05):
Is the ultimate and that will ultimately end up in
the bank's hand. If there's a no vote, that the
banks are in charges of Tuesday essentially and they'll be
running the show that they have. The ultimates say they
could put blunt up, so they could they could do
anything they like within reason. They could put it into
(02:25):
receivership as of Tuesday, it's up to them that they've
got a deadline of nineteen December to get the money
in and be paid. But ultimately, whatever happens, if the
no vote.
Speaker 1 (02:36):
Is up, then there's a concern around Dawn Meats as well,
but this can just be viewed as a short term
face yearly, you could.
Speaker 2 (02:43):
Have said that about Shanghai Nailing or Bright Meat and
silver and Farms. I mean, Dawn Meats are pretty sharp
operators in the UK. I don't know them. I don't
know them at all, but ultimately the one they're the
only ones right now with a credible offer on the
table to pay the money. That that is the end
(03:03):
goal or the bottom line of this is that they
need that money to be repaid.
Speaker 1 (03:09):
Right And do you think they still hope for a
remat super cooperative collaboration between likes of Silver Ferns and Alliance, Well,
I mean.
Speaker 2 (03:19):
There's a lot of talk in the industry about how
all the processes need to work together, but I mean
nobody's put their hand up to do it just yet.
Then they're all open to working together, but no one
actually seems to get round the table and if they
start working together too much, then you sort of fall
into cartel concerns with the Communis Commission. So I think
(03:39):
it's a very interesting position that we're in and I
think the next few years at a process level, it's
going to be really interesting to see it or wash
it out. And if you read the Independent Norbington report
that Norbington Partners did on the alliance, still it lays
out very clearly that New Zealand has too many we
have an excess capacity, particularly in cheap net processing. There's
(04:00):
in South End, there's arm at the moment, you know,
I can think about five ofs of my head. I
was looking at the map the other day. We have
nearly fifty five processing plants in New Zealand and we've
we've got half the ship that we did twenty years.
Speaker 1 (04:13):
Ago, and that's a great concern going forward as well. Riley.
A lot of shareholders I've spoken to us saying egos
need to be left at the door and we need
to fix the industry.
Speaker 2 (04:21):
Yeah, yeah, I think that there's there's obviously and right
there said there's a lot of emotion about the about
the last farmer owned, fully farmer owned cooperative being sold.
But at the end of the day, I think everyone
just wants to be paid a good price and when
they stopped collected, and whether that's owned by a foreign company,
(04:45):
it's owned by his own company, or it's owned by farmers,
you know, I think they're those concerns probably need to
be left at the door now and work out a
credible way forward, because you don't want the last man's standing,
you don't want to be you don't want receivers in
all New Zealander and meat processes, which I'm not saying
that's going to happen, but just a terrible scenario, particularly
(05:05):
at a time when fun get prices at record levels.
Speaker 1 (05:10):
The so called white KaiA five of their counter offer,
was this too little, too late, like maybe six to
twelve months ago, This might have been a bit more credible.
Speaker 2 (05:17):
Perhaps, Yeah, again, you need the bank support, which they
don't have. And so it's all very well and good
coming out with this proposal, and I'm more than entitled
to him to do this, but you ultimately need the
bank support. So and then the meetings in five days.
(05:40):
So they should have done this twelve months ago, when
the alliance's issues have not come around in the past
six weeks. I saw it being called as a credible
option the other day. I mean it is, but the
net profit figures of one hundred and fifty million, I mean,
it was just quite frankly, in my opinion, it's just bizarre.
(06:00):
I mean, we've never seen a processor at that level
of profitability and less than the plus five years. I
think Self Informed actually might have greached at level in
twenty twenty two, but then they've reported two losses. So
it's just I mean, they're more than entitled to do that,
but they should have done it twelve months ago when
(06:21):
there was more time.
Speaker 1 (06:23):
Okay, Riley, if you're a bidding man, would you have
the yard set at one eighty seven? Either way?
Speaker 2 (06:28):
I would, I wouldn't want to say, but I think
the crucial thing is that people have got to vote.
You know, there's a bit of talk at the moment
about and people aren't going to vote. I mean, at
the end of the day, shareholders own the company as
the company, and so in my opinion would be, you've
just got to go out and vote and then don't
let it turn out like the local elections and have
(06:50):
a turnout of thirty nine percent. Or something across them
would actually fail if it was that level. But I
think the crucial thing is either way, if he supported him,
you've just got to go and vote.
Speaker 1 (07:02):
Just finally, Riley, there's been a bit of upheaval that
the top rats of PGG writes them, yes.
Speaker 2 (07:07):
This this is this is this hugely interesting. I mean
PGG writs from have had their governance issues for a while.
You know, every now and again there's something that just
sort of happens. But I was flying to Cargole on
on Tuesday and their annual meeting was it was in
christ Church and I thought, I'm not going to watch
(07:28):
their annual meeting. You know, they seemed to have sort
of theirshes out and the land is named the Cargo
and the famous blowing up and Agria the largest shareholder
and Elders which people will be familiar with. It's the
South Australian Real Service assume had turned on Gary Moore
the chair and Sarah Brown the deputy chair from from
them the Cargo and voted them out. The just complete
(07:51):
shop turned on them.
Speaker 1 (07:53):
Why is that? What's going on?
Speaker 2 (07:55):
Nobody, nobody really knows. There's two days on that there
was a statement to the ins ofex Magria about an
hour ago, which said, you know, we see this as
an opportunity to refresh the board. But they've they've nobody
has given any light as to why they've done with
Gary Moore than our former chair job he's jobless. He
(08:17):
met with Ala May of Akria on Friday and Alan
said you're doing a great job. You know we'll support
you and don't expect any surprises. Then, apparently the meeting
in christ Church was very bland is how Gary described it.
He was working hard to even extract questions from the floor.
Then he went off I think, had a cup of
tea and had a tap on the shoulder telling him
that he'd been voted out.
Speaker 1 (08:39):
Interesting times. Riley Kennedy, keep up the fantastic work at
Business Desk. Appreciate your time as always.
Speaker 2 (08:44):
Thanks Andy, You is not the one man.
Speaker 1 (08:48):
Riley Kennedy of Business Desk. All Roads lead in Vacago
next Monday. Regarding this Alliance special meeting. This is the
master up next MP Joseph Mooney, this talk about the
passing of SM Jim Bolgia, show me everything
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