Alliance Group meatworks in Southland. Photo: RNZ / Nathan McKinnon
Alliance Group farmer-shareholders have voted in favour of a proposed $270 million investment from Irish meat processor Dawn Meats.
Under the agreement, Dawn Meats will acquire a 65 percent stake in Alliance Group, with farmer-shareholders retaining 35 percent ownership.
More than 2600 shareholders took part in the vote, representing 92.5 million shares - more than 88 percent of all shares on issue.
Of those, more than 87 percent supported the proposal.
Photo: Supplied
Alliance chair Mark Wynne said the result showed strong confidence from the company's farmer-owners in its direction and leadership.
"Our farmer-shareholders have given a clear mandate for Alliance to move forward in partnership with Dawn Meats. This is a vote of trust in our people, our operations and our vision."
Wynne said the partnership followed a two-year process to reset and recapitalise the business after challenging years for the meat sector.
"The Board explored every option to secure Alliance's future. The Dawn Meats proposal stood out as the best strategic and financial path forward, a view confirmed by independent adviser Northington Partners."
He said the investment would strengthen Alliance's balance sheet, reduce debt, and enable greater capital investment in technology and efficiency.
Wynne had previously said the bank had made it clear the company's $188 million in debt had to be paid back in full by the end of the year.
Around $200 million from the investment will be used to reduce the company's short-term working capital facility, with the rest directed toward strategic projects.
Alliance planned to distribute up to $20 million in both the 2026 and 2027 financial years to farmer and shareholders through a mix of dividends and supply-based rebates, alongside a further $25 million dividend from the joint venture's stronger-than-expected performance.
Photo: Mary Browne
Dawn Meats chief executive Niall Browne said the Irish company was "pleased and excited" by the vote outcome.
"We look forward to maximising the potential of the new opportunities this strategic partnership will unlock," he said.
"Having the ability to now grow in partnership with some of New Zealand's leading farmers, and create a year-round supply for our customers between the Northern and Southern Hemispheres, is a fantastic opportunity - and one our customers are already responding to."
Alliance is New Zealand's largest processor and exporter of sheep meat and a major producer of grass-fed beef, operating six plants nationwide and exporting to more than 65 countries.
Dawn Meats, established in 1980 in Ireland, is one of Europe's largest red meat companies, processing about one million cattle and 3.5 million sheep annually through its Irish and UK facilities.
Wynne said the deal marked "a turning point" for the co-operative.
"The future looks much brighter than it did 12 months ago," he said.
"We're now well positioned to thrive alongside a complementary partner like Dawn Meats and deliver enduring profitability and greater value for our farmer-shareholders."
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