While consolidation of the red meat sector was required to achieve long-term profitability, with strong leadership essential, he decided against standing as he had a heavy workload in the second half of the year, he said.
Several unsuccessful attempts were previously made to get Mr Monaghan, who lives in Eketahuna, on the Alliance co-operative's board.
His nomination in its supplier director election last year was rejected; he failed to meet criteria set out in the company's constitution as his interest in Ngapara Farms, an Alliance Group shareholder, was too small.
Shareholders Mark Patterson and Mandy Bell then put forward a non-binding resolution to the company's annual meeting, asking the board to appoint him as an independent director, which was passed.
Alliance Group chairman Murray Taggart later said Mr Monaghan had withdrawn from the independent director appointment process, but Mr Monaghan maintained he had not.
Mr Monaghan said that over the past nine months, he had increased his investment in a dry stock farm and the co-operative.
He had ''a number of calls'' from Alliance Group shareholders asking if he would be standing for election. It was clear from his discussions with them there was a growing momentum for industry reform, he said.
While the sector had a ''fine heritage'', it needed to adapt to reap the benefits of global markets.
''The crazy procurement practices, over-capacity and lack of marketing leverage that are eroding our position need to be dealt with.''
Mr Monaghan, a former chairman of the Fonterra Shareholders Council, said the long-term outlook for dairying remained strong.
By having scale, vertical integration and a focus on working together, the New Zealand dairy industry was well positioned to match customer needs with manufacturing capacity and a quality milk supply.
The red meat sector needed to set itself up to do the same if New Zealand was to capture the additional $0.5-$1.3 trillion in agricultural exports by 2050 that were ''there for the taking''.
