Wrightson acquires fuel distribution networks

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Rural Services company PGG Wrightson has cast its widening net over the fuel distribution sector, which it says will make it a one-stop shop for farmers.

Wrightson has extended its traditional interests in feeds, seeds, wool, livestock and real estate into meat production and is making a bid for a stake in meat processing at Silver Fern Farms.

"What we now have is a dedicated distribution system for fuel, which extends our range to cover every significant input required by a typical primary producer," said the company's general manager of rural supplies Grant Bunting.

Wrightson has signed a South Island distribution agreement with bulk fuel supplier Southfuels and the two companies have established a new joint venture, Northfuels, to provide the same service in the North Island.

"When we asked our clients how we could improve the range of products PGG Wrightson provides, they told us farmers want a reliable bulk fuel service, delivering on-farm, on time with the ease of charging through their existing account," he said.

Wrightson had previously had access to petrol and diesel but the new development was to have its own distribution network, "where we can control the service levels," Mr Bunting said.

Managing director of privately owned Christchurch based Southfuels, Lance King, said the deal offered the chance to access Wrightson's 90,000 clients. A typical farm might use 10,000 to 15,000 litres of fuel a year, while farms with diesel-powered irrigation pumps might use up to 50,000 litres.

Southfuels was established in 2006, taking over the South Island rural supply business of Shell.

- NZPA