Forum Archive Index - September 2001

["Roy McCallum" <roy.mccallum@xtra.co.nz>]

Pardon my ignorance, but I was under the impression that rural
supply sales were dominated by 'Wrightsons' and 'Pyne Gould Guinness 
Reid Farmers'.   RDI, who?  Fencepost, what?   

Wrightsons, Pyne & Co, Reid Farmers and Williams and Kettle are the last
of the traditional Stock and Station agents. However Farmlands and other
regional Rural retail coops are direct competition.

Are those two serious players?  What sort of market share figures do
they have?

Sorry I don't know the market share figures. Yes the RD1 www.rd1.com and
Fencepost www.fencepost.com operations are serious businesses selling to
the same target market as Wrightson etc but without livestock stock and
wool services. Although both are attempting an entry into livestock
transactions via a web service. The major strength they have in dealing
with dairy farmers is payments are made by direct deduction from milk
payments - no bad debts and prompt payment 20th month following. Yes the
names are a little perverse.


Is the retail supply chain to dairy farmers, as opposed to all other
farmers, really that specialised? 

No, hence the possible wish of RD1 etc to expand their influence in the
market for the benefit of dairy shareholders.


Fonterra only have 20% of WRI.  Not really enough to *demand* the 
shots, even if they are the largest shareholder.  

That's the interesting bit - is 20% a starting base for building a
platform for increased influence? Or is it just a silly adventure? What
are the potentials for RD1 to buy a greater share of WRI and at what
price?


I notice that there are two new directors being nominated for Wrightson
at the AGM. 'Henry William van der Heyden' and 'Philip Michael Smith'. 

Both are directors of NZ Dairy I believe. Van der Hayden was one time
chairman of NZ Dairy and is now a director of Fonterra. Michael Smith
was once Chairman of Lion Nathan's China subsidiaries and now a director
of Fonterra, also AIA. 

It appears I may have introduced you fellows to the secret part of NZ's
economy - that based on the cooperative dairy industry - it has capital
and is bent on expansion both locally and internationally. 

How can non dairy farmer investors get a benefit from that?!


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