Alliance Group has revealed it entered into negotiations over
a potential purchase of Blue Sky Meats' assets but no
agreement was reached.
In a recent email update to suppliers, chief executive Grant
Cuff said the negotiations ''concluded amicably''.
Alliance Group frequently considered potential business
opportunities and when there was something firm to report, it
did so to its shareholders, suppliers and staff.
''In this instance, as no agreement was reached, it is not
intended to elaborate any further on the discussions,'' Mr
Blue Sky Meats is a Southland-based company which recorded a
$3.8 million after-tax loss for the year ending March.
That compared with a $449,149 loss last year and a $3.6
million profit the previous year.
Meanwhile, Lean Meats, which has a plant at Oamaru, has
announced a bonus payment to its farmer supplier shareholders
after a stronger company performance in 2013.
Chief executive Richard Thorp announced a return to its
Atkins Ranch Producer Group providing shareholder farmer
suppliers an average of 31c a kg or $5.74 a lamb.
The return could be attributed to farmers supplying lambs at
a market-reflected procurement price, through the company
being able to market and sell more packed items from a
carcass, and gaining export status to China earlier in the
year, Mr Thorp said.
While there had been a market correction at the farm gate,
returns had improved for suppliers from the previous year and
export certification to China had opened up a market
opportunity to a growing demand for lamb cuts.
The company remained confident it could continue to perform
at similar levels based on increased demand from China and
sales of lamb primal cuts into the United Kingdom, Europe and
North America, he said.