Alliance plans capital spending of $54m

David Surveyor

Alliance Group is investing $54million in capital expenditure during the next year.

Outlining the investment at a series of roadshows throughout the country, chief executive David Surveyor said the success of the business strategy meant the co-operative was in a position to reinvest to continue to build the company's operational performance.

In addition to a pool payment, the company would have a bonus share issue and reward farmer shareholders by increasing their shareholding in the co-operative.

The level would be based upon the supply of lambs, sheep, cattle, calves and deer during the 2017-18 season, Mr Surveyor said in a statement.

"Alliance is now a much fitter co-operative as a result of our focus on lifting efficiency and improving sales and marketing.

"We are making good progress against our key measures with a stronger balance sheet, improved profitability and better livestock pricing for farmers," he said.

James Ogden will retire as an independent director at the end of his term on November 30.

He will be replaced by Peter Schuyt, an experienced independent director in a range of businesses including Tatua Co-operative Dairy Company, TSB Bank Ltd and Foodstuffs North Island Ltd.

He has also held senior executive roles at the New Zealand Dairy Board, Fonterra and the NZ Post Group.

Alliance's annual roadshow programme began in Dannevirke last Monday and finishes in Fortrose, Eastern Southland, on October 19.