Just before Christmas, Massey Ferguson quietly released details of the successor to its popular MF 5700S range in the shape of the new 5S Series.

Sharing the same colour schemes and styling of the recently introduced 8S range, with its compact dimensions and a 2550mm wheelbase, the 5S Series is ideally suited to livestock or mixed framing operations.

The 5S range consists of five models from 105 to 145hp, dubbed 5S.105, 5S.115, 5S.125, 5S.135 and 5S.145. Each number indicates the maximum power output, which is available at all times, without a power boost function. Meanwhile, maximum torque outputs range from 440 to 550Nm.

Offered with three levels of specification – Essential, Efficient and Exclusive – as Rural News goes to press, final specs are still to be confirmed for the NZ market.

Power is provided by a four-cylinder, 4.4 litre AGCO Power engine, that in turn is mated with a 16×16 Dyna-4 or 24×24, Dyna-6, semi-powershift transmission. Exclusive and Efficient variants include an AutoDrive function that takes care of automated powershift changes during fieldwork or range changes during transport operations.

Featuring a redesigned rear linkage, now rated at 5.7 tonnes capacity, hydraulic systems range from 58 litres/min in the Essential model up to 110l/min – and up to 8 remotes – in the Exclusive version. Also new is a redesigned suspended front axle option said to deliver a super-tight, 4-metre turning radius.

In the cabin, the Exclusive and Efficient versions feature the same armrest control as the 8S models. While Exclusive also gets the Datatronic 5, Isobus compatible touchscreen layout. All models benefit from an improved ventilation system with better cooling airflow and demisting functions.

A factory source has told Rural News that the MF 5700s Series production will cease at the end of March 2021, with the new 5S range commencing soon after.

Alliance Group is to become an official partner of Ronald McDonald House South Island.

The independent charitable trust provides free accommodation and support to families who need to travel to Christchurch and Invercargill for their children’s medical treatment.

The partnership agreement will see Alliance provide support for the Ronald McDonald House major 2021 fundraiser – the annual Supper Club events in Christchurch, Queenstown and Invercargill – and donate meat for a range of events throughout the year.

Alliance will also play a key role in the charity’s Host a Roast month in July – when people are encouraged to host a roast, brunch or lunch and invite friends and colleagues to attend for a $20 donation to support the Ronald McDonald House programmes.

“Ronald McDonald House is very close to the hearts of many of our people, our farmer shareholders and the wider community,” says Alliance Group chief executive David Surveyor.

“A number of our employees and farmers have used Ronald McDonald House programmes and appreciate the very valuable role it fulfils. We also look forward to developing opportunities for Alliance staff through volunteering and participation.”

He says the cooperative has also supported Ronald McDonald House South Island through product donations.

“We are delighted to be forging closer ties with this important charity,” Surveyor says.

He says Alliance was first introduced directly to Ronald McDonald House South Island by members of the co-op’s livestock team.

“Our involvement stemmed from the commitment of our people. Ronald McDonald House South Island and Alliance have much in common. We both have built a solid foundation on values – compassion, care and communication – and a passionate commitement to the wellbeing of our rural communities.

“All of the Ronald McDonald House major fundraising events share a common thread, the coming together of people to share a meal and connect – just as the families that stay at Ronald McDonald House do every night.

“Alliance is all about providing high quality food from farm gate to plate to connect people across the globe. We are excited to now be formally working together.”

Ronald McDonald House South Island chief executive Mandy Kennedy says “This is the first year Ronald McDonald House has partnered with Alliance Group on our Supper Club events and we are delighted to have the opportunity to work with a naming partner so aligned with our own values.” 

She says it costs $1.4 million to annually operate the facilities.

“That is why it is so important to raise funds through events like Supper Club with the support of Alliance Group.”

Ronald McDonald House South Island operates three programmes in the South Island – Ronald McDonald House in Christchurch, a Ronald McDonald Family Room in Southland Hospital, Invercargill, and a Family Room is due to open in the new Christchurch Hospital building this year.

Warm wet weather in many areas of the country creates the perfect conditions for the production-limiting diseases flystrike and facial eczema (FE).

As well as costing the industry many millions of dollars in lost production and treatments, both issues have significant animal welfare implications and cause farmers a lot of work and worry on top of what is an already busy time of the year.

The blowfly species that affect sheep are the Australian green blowfly, the European green blowfly, the Brown blowfly and the Hairy maggot blowfly.

Each has a slightly different seasonal pattern, but all are most active over December, January and February.

Treatments are based on different chemicals. However, to avoid resistance occurring, it is recommended that farmers only use chemicals they know to be effective and alternate chemicals if sheep are being treated more than once in one season.

Preventative treatments can also be tailored to match the seasonal behaviour of the most problematic species of blowflies in a particular area.

It is recommended that a different chemical is used to treat an active lesion to the ones used for prevention.

By keeping a record of flystrike, farmers will be able to identify farm hot-spots, where the incidence of flystrike is higher. These areas can then be avoided when fly pressure is high in favour of windy, more exposed paddocks.

Specialist crops that are high in tannins can reduce dags and therefore the risk of flystrike. Genetics can also play a part by selecting sheep that are not as susceptible to dags.

Strike flies will only affect carcasses up to three days after death, so burying dead sheep as quickly as possible is also a useful mitigation tool.

Meanwhile, facial eczema is a seasonal scourge caused by the spores of the fungus Pithomyces chartarum which grows on litter at the base of pasture.

The spores release a toxin which can damage the liver and bile ducts. In some cases, the bile ducts may become partly or completely blocked. The liver damage results in photosensitivity and sunburn which are the clinical signs of the disease.

The fungus is ubiquitous, but when temperature and moisture levels are high, the fungus grows rapidly, releasing huge numbers of toxic spores.

For every animal with clinical signs of FE – which are obvious skin lesions – there will be many more with sub-clinical disease, which is the invisible on-going liver damage that can cause major productivity losses, especially at mating, lambing and calving.

Spore counts (included in the B+LNZ e.Diary but also available on a number of vet and farm service websites) will alert farmers to high-risk periods in their regions. On-farm spore counts will give farmers a measure of the risk on their individual properties.

Management strategies such as lax grazing – to avoid the toxic spores concentrated at the base of the sward – or the use of summer forage crops such as chicory can then be implemented to help mitigate the risk of FE. Zinc is an effective treatment and can be delivered via regular drenching or rumen bolus.

Again, record keeping will help farmers identify the farm’s hotspots which can be avoided during high-risk periods.

For sheep, genetic tolerance offers the best long-term protection against the disease and many breeders have been testing rams for many years now.

When selecting rams, commercial farmers (who want to include FE tolerance in their trait selection) should ask their breeder how long they have been testing rams, the level they are testing at, the number of rams they test every year and ask to see the Ramguard certificates. (Ramguard is the AgResearch-managed organisation that carries out the FE tolerance testing.)

B+LNZ has a number of resources covering Flystrike and Facial Eczema on its Knowledge Hub.

Mastitis expert Steve Cranefield says as long as the basics of mastitis management are followed the risk of one cow spreading mastitis to another cow is quite low.

He says some farmers wrongly worry about the term contagious mastitis.

“Contagious implies that you have a cold and I am going to get it from you,” he told Rural News.

“But mastitis isn’t like that: some bacteria transfer from cow to cow during milking but if farmers have risk factors sorted, like good teat condition, the risk of new infections is low,” he says.

Cranefield says farmers shouldn’t worry about transferring mastitis bug on their hands.

“We need to stop thinking that we can’t touch cow’s teats and we can’t strip cows to check for mastitis because of the risk of spreading the disease,” he says. “just keep your hands clean and don’t touch the teat end that’s all”

“Because we have this perception that it’s contagious and our interaction of contagious: that it is something bad and we are going to spread it…..that isn’t the case.” Cranefield spoke a Smaller Milk and Supply Herds (SMASH) field day at Tania White’s farm in Te Aroha.

White’s farm recorded an average somatic cell count of 31,180 – the second lowest among Fonterra suppliers last season.  She was pipped by her parents Graham and Glenys Bell, who farm up the road and recorded an average SCC of 30,050.

Cranefield gave the Bells and Tania a big tick for handling SCC, produced by a cow to fight mastitis.

“They are some of the best in the country. There’s a huge element of pride involved. They know they produce the cleanest milk in the country.”

Cranefield says mastitis remains the biggest animal health issue in the dairy industry and farmers should take more pride in tackling mastitis.

There are a lot of benefits in keeping SCC down in cows; production gains and lower vet costs.

“Every time you treat cows, it costs you hundreds of dollars. Financially it stacks up and production wise there is an element of pride.”

Graham Bell told the field day that it’s down to getting the basics right every time.  “There’s no secret, it’s just about doing a good job and paying close attention to detail. We love our stock and want them to be as healthy as possible so we look after them as well as we can,” he says.

“Getting the basics right through our hygiene practices, during the calving period and with our testing means we have a consistently low cell count where the milk quality is better and we have healthier cows.”

Cranefield says key things done by the Bells and Tania White is that they use set cows up well for the next season using a combination of dry cow therapy and teat sealant on cows.

“Right from day one they are focused on mastitis. They are collecting cows in calves twice a day, so freshly calved cows are getting milked straight away.”

Treating Mastitis

• Clean the teat end, before taking a milk sample or treating the cow
• Collect milk sample, run it through Mastatest to know the mastitis bug and best antibiotic treatment or submit to lab for sulturing bacteria or freeze for later
• Treat with pain relief (such as KetoMax) to reduce fever or swelling
• Treat with antibiotics as per veterinary authorisation
• If the cow is very unwell, seek veterinary advice

Beef + Lamb New Zealand Genetics is launching a beef programme, which it says is designed to generate more income for beef producers and the economy while also protecting the environment.

B+LNZ Genetics’ general manager Dan Brier says modelling has shown that through this programme farmers can increase the beef industry’s income by $460 million, while improving the environmental and social outcomes for their farms and communities.

He says the programme, which builds on previous work by B+LNZ Genetics such as the Beef Progeny Test, is the industry’s response to increasing demand for high quality food produced with a lower environmental footprint.

Brier believes, with the right science and tools, farmers will be able to produce great tasting meat with a good environmental story – while maintaining and improving their production efficiencies.

“Our meat companies are already moving in this direction, with several introducing quality grading systems and working under the Taste Pure Nature initiative to target the ‘conscious foodie’ consumer.”

AbacusBio consultant Jason Archer will be providing the science lead on the programme while Matias Kinzurik from B+LNZ Genetics will be the overall manager. 

The programme incorporates seven areas of work which start with the development of NZ-centric breeding objectives.

Brier says these will be focused on this country’s pasture-based system where cows play a dual role of supporting sheep production while producing a high-quality product.

A data measurement and collection system will be developed to collect phenotypic and genotypic data and a new Beef Progeny Test, using Angus, Hereford and Simmental genetics, will identify the performance of the agreed-on traits linking with international beef and dairy beef genetics.

“The Beef Progeny Test will be underway this mating season, having secured a farm and identified bulls to create linkages to international datasets and previous progeny tests. Time is of the essence when dealing with biological systems so we took the opportunity to get started so we have calves on the ground next year.”

The fourth area of work is the use of next generation commercial genomic tools to support stud and commercial operations. Commercial farmers, who are performance recording, will be used to ground-truth these tools and provide broader-based performance data and feedback.

Brier says B+LNZ Genetics will use its experience of building a genetic engine for sheep to build a similar engine for beef, combining phenotypic, genotypic and genomic data to calculate breeding values for agreed traits.

Ultimately, under the Beef Programme, B+LNZ Genetics plans to extend nProve genetics systems to include stud cattle. This will aim to give commercial users the ability to source the right genetics quickly and easily for their environment and farm system.

“The final and arguably most important part of the Beef Programme is industry uptake and we will bring a laser-like focus to this challenge,” Brier adds.

“It ensures we are transferring knowledge to commercial farmers and making cutting-edge tools and resources available to the beef industry.”

The NZ beef industry is made up of 25,000 farmers and 3.6 million beef cattle.

Of these, one million are breeding cows – which combine with the dairy herd to produce 1.4 million animals for processing annually.

NZ beef exports total $4.2 billion.

OPINION: The year ahead for New Zealand’s primary sector is full of promise and opportunity.

Of course, there are challenges and there will be more that haven’t yet been realised. But the very fact that the country is relying on the sector to underpin, enable and drive economic growth means that there will be support. And the goodwill towards the work that the primary sector did during the Covid lockdown is still with us.

Internationally we are highly-respected for what we achieved collectively through Covid. New Zealanders listened to the science, obeyed the instructions and achieved a positive result.

What applied during Covid reflects our general attitude – when the facts are clear, we comply. This is part of why we are trusted as a food supplier. Our food is safe to eat as well as delicious. It is also what people want for health.

AMN and Mintel (consumer trend analysts) released a report at the end of 2020 indicating that half of consumers prefer foods that naturally contain beneficial ingredients. Protein and the omega-3s that are higher in grass-fed than grain-fed meat and milk fit the bill. Almost half of consumers plan to purchase more items related to health and wellness, so grass-fed meat and milk should be high on the shopping list.

New Zealand systems are also more efficient in terms of environmental impact (nutrient loss, GHG production and water use) than in other countries – producing more human-accessible protein with a lower footprint. Almond milk cannot compete and nor can lentils!

And for those concerned about organic matter and biodiversity, again, New Zealand has the edge. Soils are rich in organic matter and biodiversity is protected in the third of New Zealand that is under Department of Conservation management. It is also in the hundreds of hectares of riparian plantings, wetlands and QEII covenanted native forests.

The thousands of new native plants cared for by farmers is sometimes overlooked. Biodiversity is part of the New Zealand story, based on science and research, that will assist the marketers sell our products.

Science is key.

Science shows that our food is nutritionally dense before it leaves the farm gate. It shows that the omega-3s are there. It shows that our soils are in a good state and that farmers are managing an ever-improving system.

The research released by Our Land and Water (OLW) National Science Challenge in December showed what has been done. Over the last few decades, land managers have taken action – excluding stock from waterways and implementing new technologies for effluent management and irrigation. The effects are clear in reducing nitrogen and phosphorus in waterways.

Planting trees and installing sediment traps has assisted with reducing erosion and intercepting any sediment before it enters waterways. OLW estimates that 30% more sediment would have entered rivers during the two decades 1995 to 2015 if farmers hadn’t changed their practices.

More action is required to achieve the goal, and the research that has underpinned the primary sector is vital for the future. Deloitte made this clear pre-Covid in its report “Slice of Heaven – regions of opportunity”. Analysing potential for growth in major sectors, Deloitte pointed out that not all regions are equal, and that investment should be made in areas of natural advantage.

NZ’s primary sector has proved its worth and has a worldwide positive reputation.

For people making New Years’ Resolutions for health and the planet, New Zealand protein can’t be beaten. Add in mānuka honey, the high antioxidants in blueberries and blackcurrants, and the vitamin rich kiwifruit, plus the simple deliciousness of other fresh fruits and vegetables and it isn’t surprising that so many people want to return or emigrate to New Zealand. Add in the New Zealand wines and it is clear that the Primary Sector will continue to have a positive future.

Cheers to a successful year ahead.

• Dr Jacqueline Rowarth has a PhD in soil science and is an Adjunct Professor at Lincoln University. She is also a farmer-elected director of DairyNZ and Ravensdown. The analysis and conclusions above are her own. 

OPINION: It will be interesting to see if the Government, which Prime Minister Jacinda Ardern claimed on election night would govern for every New Zealander, will make much needed changes to its freshwater rules after recent feedback.

Late last year, the Southland Advisory Group – made up of farmers, industry good organisations, environmental groups and local government in the region – recommended pugging rules and resowing dates be scrapped from the National Environmental Standards for Freshwater.

Right from the outset, these rules, especially in a southern NZ setting, were totally impractical. As they are now, the rules require paddocks around the country to be resown by 1 October or 1 November in Otago and Southland.

Since day one, government ministers and officials have been told that these rules are completely unrealistic given seasonal variations in rainfall and practically impossible to implement in most years.

Meanwhile, an Economic Impact Report on Land and Water Management in the Ashburton District suggests that the new freshwater rules will reduce farm profitability in that region by 83% a year.

The report points out that farm expenditure is estimated to decline by $139.9 million per year across the Ashburton district alone – perversely making farmers far less effective managers of their land, which will only negatively impact on water quality. If these figures are extrapolated across the rest of the country the costs in export earnings and tax revenue will be devastating for our economy.

Farmers have as much incentive as anyone else to want better water quality.  They and their families also want to drink, swim and fish in water that is of the highest quality. However, the rules for achieving this must be practical. A one-size-fits-all approach will not work. Local issues need local solutions.

Rather than implementing restrictive sowing dates on winter crops, putting in ridiculous pugging measurements or placing arbitrary rules on what slope a paddock must be, there needs to be flexibility in accommodating seasonal variations in rainfall, climate and other regional factors.

The Government must listen to feedback on what are currently unworkable freshwater rules. Recommendations from the Southland Advisory Group have been presented to the Minister for the Environment David Parker and the Minister of Agriculture Damien O’Connor.

Let’s hope they have the good sense to make the necessary changes.

“Without a facilitator, we would just have done that farmer thing and sat round, shuffled our feet and waited for someone else to say something,” says Red Meat Profit Partnership (RMPP) Action Group member Reece Cleland.

Cleland, who farms sheep and beef cattle at Springfield in Central Canterbury, is part of an RMPP Action Group focused on members better understanding their farm finances and lifting productivity.

The RMPP Action Network model supports small groups of seven to nine farm businesses to work together to explore ideas and share expert resources to help them to make positive changes on-farm.

Cleland says that facilitation is the key to the success of the programme and without facilitator Genevieve Steven, the group he is part of would not have experienced the progress it has.

“It’s been really good because of Genevieve. She does an excellent job of drawing out everyone’s ideas and making us accountable.”

Steven, who works as a rural advisor with KMPG and facilitates four action groups in Canterbury, says making sure all members’ voices are heard is a key part of her role.

“You need to be very organised. Farmers are very busy so ongoing facilitation and contact helps keep them on track. You need to be a good listener, to be able to engage, be confident and comfortable bringing people together and getting them on the same page and heading in the same direction,” she says.

“You also need to be able to put yourself out there to get the best outcomes. You do need to hold your members accountable and challenge them to go beyond their norms.”

Steven formerly worked for ANZCO and was involved with the RMPP pilot programme for the Action Network. She worked with three groups with ANZCO and was then instrumental in pulling together several new groups after joining KPMG.

“From the outset, you have to enable a safe environment for people to share and build trust with other people,” she says. “You are bringing together people who may not necessarily know one another. I deliberately work to get a good mix of ages and experience, to encourage that diversity of thought and sharing.”

North Canterbury sheep and beef farmer George Fox, a member of one of Steven’s other action groups, agrees that having someone to ‘organise’ their group has been critical to its formation and success.

“There are nine farm businesses in our group. It would be very hard for us to organise the events,” he explains. “We might be able to arrange a day to meet but Genevieve works to get that extra 20% out of everything we do. She is an awesome facilitator and very good at engaging us all.”

AgFirst consultant Tafi Manjala facilitates three action groups in Northland and says a key role of the facilitator is to bring out of the farmer group. He adds this includes the knowledge, principles, practices and tools to demonstrate what ‘good’ looks like and help motivate farmers to action in their businesses.

“Farmers are more motivated to change when they see and hear it from other farmers,” Manjala adds. “A key part of facilitation is having that mix of experience in the group and bringing out those conversations, so they get the most from what other group members or the subject matter expert is sharing.”

His groups’ areas of focus include increasing pasture and crop eaten, succession and back to basics.

“A lot goes into organising and preparing for each action group day. You need to prime the farmers ahead so they know what activity they will be doing and what preparation they need to do for that meeting,” Manjala explains.

“For instance, if we are looking at managing drenching using faecal egg counts, then I would ask farmers to bring test results that relate to their farm so discussion can be relevant to what they individually need to do when they get back on farm.”

He believes the key to making it work is to agree on actions farmers are willing or need to take after the meeting and starting the next meeting by re-visiting how they went.

“It’s a sharing session, to discuss any barriers they’ve faced and share experience and advice. That also means there aren’t a lot of further discussions about that during the day, so we can focus on the current meeting’s topic.”

Fraser McKenzie, director of Oamaru-based McKenzie and Co chartered accountants and business advisors, facilitates one action group and is involved with four others facilitated by the company’s general manager Michelle McLean.

“As a facilitator, you have to be passionate about people and actively want to assist them to learn and change,” he explains. “You also need the ability to be impartial. You can’t go in with preconceived outcomes – you have to let it flow.”

 McLean says facilitators’ work is well supported by the action group model.

“RMPP has developed a very good process, you need to trust it, and we are yet to see it not work. A lot of what we do is ‘Tell us what you want to know’ and we’ll provide the tools for that learning. Pre-work is important.

Meanwhile, Cleland says his experience is that friends in non-facilitated groups are simply not getting the results his action group is experiencing.

“I was talking to a friend and he’s in a discussion group which doesn’t have a facilitator and they don’t really have any direction. They go to each other’s places and have a chat and a few beers. I said, ‘You need to get on to RMPP and get yourself set up as an Action Group – with a facilitator.”

Get Involved

B+LNZ is adopting the action group extension and adoption model into its business to help support the delivery of B+LNZ’s ‘Farming Excellence Strategy’ to ensure all sheep and beef farmers have the opportunity to benefit from the success of the RMPP Action Network small group learning approach. As a result, the programme will be supported beyong the end of RMPP.

Drought in the North Island had a significant impact on the number of lambs tailed in the first half of this season.

According to Beef+Lamb NZ’s latest economic report, the total number of lambs tailed in the North Island was down 4.8% meaning a decline of 546,000 head to 10.8 million. This is in contrast to the South Island where the total number of lambs increased by 189,000 head, an increase of 1.6%, for a total lamb crop of 12.1 million

Overall, the report says total number of lambs produced this season is 357,000 head less than spring 2019. However, despite the problems with the drought, the overall picture is far from gloomy.

The actual total lambing percentage for the season was 130.3%, which is just 0.7% lower than last season. The word from industry is that while the number of lambs born was lower, the survival rate was higher than normal. B+LNZ also points out that while the average lambing percentage is slightly lower, 2019 was a high performing season.

B+LNZ chief executive Sam McIvor expects lamb and sheep export volumes to be more significantly impacted by the follow-on impacts of the drought, due to lower animal weights and the retention of sheep for breeding to rebuild stock numbers.

“Despite the challenges of 2020 including drought and Covid-19, sheep farmers demonstrated why they are the world’s best; their resilience and the agility of their farming systems has meant they’ve performed outstandingly and this should be a real point of pride for our sector,” he says

The report says that number of lambs available for processing for export markets this year is estimated to decrease by 4.5% to 18.25 million.

In the past season, the number of ewes put to the ram remained virtually the same as the previous season. However, it seems that hogget mating was off the agenda for many farmers with the number of lambs born to ewe hoggets down 22% on the 2019 spring.

The big drop was on the East Coast of the North Island where the number of lambs born to hoggets was down 53% on 2019.

The only region to show an increase in hogget mating was Marlborough/Canterbury and that was just a mere 1.9%.

In terms of lamb survival rates, B+LNZ says this was much better in the North Island, and quite good in much of the South Island. However, in contrast to the rest of the country, survival rates in Otago-Southland were poor due to unsettled spring weather.

The report by chief economist Andrew Burtt notes that many farmers are concerned about lower farm-gate prices due to global market uncertainty, which is a combination of Brexit and Covid 19 – particularly the logistics of getting product to market.

Burtt says farmers are also concerned about low wool prices and the competition of forestry for farmland.  He adds that the Government’s Essential Freshwater package is impacting on farmer morale and farmers are looking for clarity on what’s required of them under the new regulations and some guidance on how to meet these new rules.

After being dogged by claims about its entitlement to the wage subsidy, the country’s largest meat processor will now fully pay it back.

Just prior to Christmas, the Alliance Group announced that it “had chosen to return the balance of the wage subsidy to the Ministry of Social Development (MSD).”

The company had already repaid $21 million of the $34m wage subsidy it claimed during the Covid lockdown and said it will now return the balance.

“From the outset, Alliance has been clear we would only use the wage subsidy in the way it was intended by government and our previous re-payments reflect this commitment,” chair Murray Taggart explained.

“Following the filing of our company accounts last month, the Alliance board believes the co-operative is in a position to repay the remaining balance. We acknowledge the support and certainty the Government provided to help us keep many of our people in jobs.”

Taggart added that the company had retained $1.9 million for the Leave Support Scheme payment to employees that were required to self-isolate or were unable to work.

Alliance had been under pressure to repay the subsidy following the move by rival meat processor Silver Fern Farm to pay it back and had been facing a private prosecution by self-proclaimed professional campaigner Simon Lusk for only returning part of the $34.3 million Covid-19 wage subsidy it claimed.

In September, Lusk sought leave of the court to bring a private prosecution against the South Island meat company’s non-executive directors for Alliance’s “disgraceful” failure to completely repay the wage subsidy.

Alliance – along with other meat processors – was declared as an essential food-producing service and permitted to keep operating during New Zealand’s March-imposed Covid-19 lockdown. In September, the farmer-owned co-op said it had repaid 50% of the wage subsidy claimed. It has since then paid back another $4m, leaving it $13m short of what it claimed in total.

In November, Alliance announced an underlying profit of $27.4m for the 2019-20. However, adjusted for a one-off historical wage claim of $20 million, its annual profit was only $7.5m before tax.

At the time, Alliance chief executive David Surveyor told Rural News Lusk’s claims were unfounded and show no understanding of the process being run by the Ministry of Social Development (MSD).

“Alliance Group has always been open and upfront about the wage subsidy application, which has been widely shared with the public. We have been in ongoing constructive discussions with MSD about the application of the subsidy and stated from the outset that we would return any funds not used to pay people.”

Alliance wasn’t the only meat company to claim the wage subsidy. Silver Fern Farms was paid $43.2m and the Anzco Group got $17.3m. Several other smaller meat companies also claimed it. Silver Fern Farms repaid the subsidy in full.

Meanwhile, other large meat industry players did not claim the subsidy, including Affco, Greenlea and Hellaby.