Forum Archive Index - August 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
>
>Farmer shareholders of NZ Dairy are questioning the sense of the $
>27m spent on WRI shares last month. RD1 is not wholly owned by
>NZ Dairy - a proportion is held by ASB and others so the reason for
>the share purchase by RD1 of WRI is confused.
> 
>Kiwi Dairies the other major dairy in the about to merge Fronterra
>owns Fencepost, a similar company to RD1, which will also probably
> to be included in any restructuring of the industries rural supply
>stores.
>
>WRI could be a major, perhaps even key element, in the
>merging of a high proportion NZ farm supply services into
>a single entity retailing to all sectors of the primary
>industry. 
>
>

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

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

>
> 
>A farmer cooperative like Fonterra often takes a role both in
>processing and marketing products locally and internationally but
>also in the farmer supply business with the intention of keeping
>producer costs down.
>
>Wiseness or recognition of the unnecessary is often not seen as
>being important in a farmer cooperative!
>
>It is unlikely that the dairy industry vision for WRI
>will coincide with WRI's current vision of its future.
>
>
Frontera only have 20% of WRI.  Not really enough to *demand* the 
shots, even if they are the largest shareholder.  I notice that there 
are two new directors being nominated for Wrightson at the AGM.
'Henry William van der Heyden' and 'Philip Michael Smith'.  I've 
never heard of them and curiously no information is supplied on the 
voting form.  Anyone able to enlighten us?

Interesting comments Roy, thanks. SNOOPY



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