Invercargill-based meat processor Alliance Group halved its profit to $31.3 million for the year ended September.

The result was lower than last year's $72.1 million profit because of the record prices paid to sheep and lamb suppliers, chairman John Turner said yesterday.

"The fundamentals for sheep meat remain strong with international sheep meat stocks low," he said.

Alliance also announced it had bought its first North Island meat processing plant - Dannevirke Meat Processors - from receivers for $850,000 to secure year-round increased sheep and lamb meat supply.

- NZPA