Writing in its annual report, the Invercargill meat co-operative processor and marketer also announced the resignation of independent director John McCliskie, adding that he would not be replaced.
Mr McCliskie, an orchardist and businessman, has been on the board since 1996 and has several directorships, including the Accident Compensation Corporation.
The Otago Daily Times revealed last month that Alliance and Dunedin meat co-operative Silver Fern Farms were both looking at sourcing lamb from Uruguay to complement New Zealand's seasonal supply.
Management from both companies have recently been to South America.
Earlier, Alliance reported a $42 million profit before tax and pool payments for the year to September 30, 2009.
This compared with a $68 million profit a year earlier.
Revenue for the year under review was $1.494 billion, compared with $1.283 billion, but operating expenses increased from $1.202 billion in 2008 to $1.451 billion.
The biggest movements in expenses were quota costs of $4.5 million, associated with the purchase of Levin Meats, a further $2.2 million in demolition costs, associated with the plant's upgrade, and $818,000 in bad debts, a massive increase on the $25,000 allowed for the previous year.
Directors fees were also higher at $481,000, compared with $377,000.
The accounts confirm the co-operative's financial strength, capped off by paying farmers record prices for lamb, a strong performance in sales and also from its plants.
That performance enabled Alliance to distribute $15 million in pool payments and pay a fully-imputed dividend of 5c a share, equating to total shareholder distribution of $17.8 million.
The average pool payment for qualifying stock was $3.34 a lamb, $1.50 a sheep, $20.32 for cattle and $10.19 for deer, which was over and above yield quality payments and schedule prices.
Total equity during the year grew from $339 million to $361 million, total liabilities were steady with the previous year and total assets rose from $493 million to $517 million.
However, inventories were up sharply at $147.7 million, compared with $136 million a year earlier, but this was partially offset by greater cash and cash equivalents of $2.2 million, compared to $443,000, and higher financial assets and derivative, $15.4 million compared with $2.1 million.
Chairman Owen Poole said Alliance was focused on developing further processing technology, improving the yields of edible co-products and continuing the advance of joint innovations in slaughter and dressing technology.
He said that while markets were healthy for the coming year, the exchange rate tempered the ability of farmers to enjoy those benefits.
