He was keen to stress the danger of fragmentation in New Zealand and the importance of sticking together as a co-op.
"I know we don't always agree with what's happening at board level but if we start to fragment, the dairy industry in New Zealand is finished. In the UK we were part of a co-op and things were really good. And then all of a sudden deregulation came along and companies, other processors, were offering dairy farmers a penny a litre more. The guys in the co-op said 'stay where you are or we're finished'. Farmers lost control of the dairy industry, and that is what I fear here.
"We don't need more stainless steel being built in New Zealand or we'll end up with a lot of inefficiencies, so we've got to stay together. The board, the directors are aware that we have to get out there and hold on to what we've got."
Because Kiwi farmers rely on export markets, Allan says we have to jump higher than most, otherwise there's a risk of losing them.
One of the reasons he left the UK originally was because the supermarkets had dairy farmers "over a barrel". He liked the idea of coming to New Zealand and getting exposure to the rest of the world. "I thought, this is a hell of a lot better than getting dictated to by one or two supermarkets. It's exciting that we get out below the European umbrella where It was cutthroat," he says. Farmers had no bargaining power.
"I still believe the bigger picture is key."
He believes it's really important that farmers engage with the Co-op as much as possible. He says he won't be selling his shares and he won't be tempted away by competitors.
The current market signals are positive, and he believes supply and demand are lining up to support a more sustainable pay-out.
Another reason he is such a staunch Co-op supporter is because if Fonterra were to become fragmented it would negatively affect all dairy farmers in New Zealand. If Fonterra stays strong it will continue to dictate the price.
Allan believes there are exciting opportunities in value-added products, which could put other companies under pressure because of the potential for better returns.
Another plus of being with the Co-op is having access to the extension services it offers - everything from sustainability advisors to milk quality experts and technical sales reps. "We do like singing the praises of Fonterra around the world and back in the UK. Services are available here and I think people over there are blown away by just how much we are ahead in the dairy industry, and where we are going."
Success starts with your farm.
If you’d like to talk to us about your relationship with Fonterra, we’d love to hear from you. Please reach out to your local Co-operative Services Area Manager.
Or if you’re considering joining Fonterra, organise a catch-up with one of our team.