Dawn Meats — which trades as Dunbia in the UK — has hailed a 'fantastic opportunity' to expand its global footprint after farmer-shareholders of New Zealand’s Alliance Group voted in favour of a NZ$270m (£115m) strategic partnership.
The vote allows the Irish processor to take a 65% stake in Alliance, with farmer-shareholders retaining 35%. Alliance is New Zealand’s largest farmer-owned red-meat co-operative and a major exporter of grass-fed lamb, beef and venison.
Dawn Meats and Dunbia together operate 24 sites across Ireland and the UK, processing around 1 million cattle and 3.5 million sheep each year. The company employs more than 8,000 people and exports to over 50 markets worldwide.
Chief Executive Niall Browne said the partnership would unlock major benefits for both companies. “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and now look forward to maximising the potential of this strategic partnership,” he said.
Browne said the move would help create a “year-round supply” between the Northern and Southern Hemispheres and strengthen Dawn Meats’ ability to serve global customers.
Alliance Group Chair Mark Wynne said the result showed “strong farmer confidence” in the company’s future.
“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,” he said.
He described the partnership as an “essential investment” that would enhance financial stability, operational capacity and long-term value for farmer-shareholders, while maintaining their 35% ownership and governance rights.
Around NZ$200 million (approx. £85 million) of the investment will reduce Alliance’s short-term working-capital facility, with the remainder funding new projects.
Farmer-shareholders will also receive up to NZ$20 million (approx. £8.5 million) in distributions in each of the next two financial years and NZ$25 million (approx. £10.7 million) in joint-venture dividends.
“This outcome provides Alliance with a strong foundation for the future,” Wynne said. “Together, we will deliver profitability, new global opportunities and greater value for our farmer-shareholders.”
