farmer access
treasures galore
WAC’s signs questioned, and other hot topics from Fed Farmers’ High Country Conference. pages 10-11
Old cars and oilcans... just a few of the treasures from this collectors ‘toybox’. page 34
Rural NEWS
wool campaign Pet lambs, shearing and high fashion kick off Wool Week.
page 8
to all farmers, for all farmers
June 21, 2011: Issue 494
www.ruralnews.co.nz
PGW rubber hits road PGW’s new strategy has been triggered by several years of poor performance. “Some sort of strategic change was needed.” He isn’t surprised PGW is focussing more on its rural service and ag-bio businesses, with money raised from sales strengthening its balance sheet and funding developments in rural trading. Anderson admits PGW has under-
SU D ES H K I SSU N
THE RUBBER is hitting the road at New Zealand’s largest rural servicing company. PGG Wrightson managing director George Gould promised to take the firm back to its roots when he returned to the board and an executive role in February. Now, in a matter of weeks, a suite of divestments has been rolled out as “non core” assets are offloaded, including a shareholding in FARM IQ. PGG Wrightson (PGW) chairman John Anderson told Rural News the divestments are assets “distracting senior managers and where we don’t get returns”. He says PGW’s future lies in quality customer service and having good back office support for its rural trading business. The company is offloading finance, selling its stake in Merino NZ, scaling back involvement in Farm IQ, and is already out of New Zealand Farming Systems Uruguay. Anderson, who took over the chairmanship in April last year, says new majority shareholder Agria supports the new business plan put in place after the departure of key shareholder and chairman Craig Norgate in 2009. “Agria has confirmed its support for the strategy. Going forward it will be business as usual with our rural supplies and seeds business.” He plays down media reports of a possible float of the seeds business on the Hong Kong Stock Exchange. Farmer co-op LIC has invested $10
John Anderson
invested in its rural services division. Online purchasing and upgrading backoffice operations, including invoicing, are areas where improvements are needed. “It’s all about getting the back office working like a well-oiled machine.” The rural supplies business has been kept going by “a wonderful group of people” and going forward, it’s all about quality earnings, he says.
irish eyes on fieldays
Consul Rodney Walshe flies the flag for Ireland at Fieldays, one of many nations looking to forge closer links. More from the Fieldays pages 4&5.
million in Agria’s bid for PGW hoping to get a slice of the seeds division when it is floated. But Anderson says he has never talked to LIC about the seeds business. “It’s up to the PGW board and shareholders to decide on the future of the seeds business. No decision has been made.” A special shareholder meeting is being held in Christchurch on June 28, but that is about Ngai-Tahu’s bid for a 7.2% stake in Agria Group, the parent company of Agria Singapore which has taken the 50.01% stake in PGW. Anderson rules out PGW returning to the fine wool or finance sector saying its distribution agreement with Heartland Finance provides a far better range of facilities. On FarmIQ, PGW is still involved as a partner, but has no financial investment. Employees are seconded to the Landcorp/Silver Fern Farm PGP meat sector joint venture “as a contribution in-kind”. Broker Grant Williamson, Hamilton Hindin Greene, Christchurch, says
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