Farmlands promises to deliver merger benefits

Last updated 16:48 17/03/2014

Relevant offers

Agribusiness

Yealands sale transparent, say key players Holy cow! Milk supplies overwhelm US dairies Ballance award winners celebrate as farm passes wow test Police bosses back Taranaki farmers' fight against rural crime Organic wines study shows good quality SFF board could ignore shareholders' moves Going the extra mile for sustainable farming Wairarapa farmer welcomes public on his land Hawarden farmers looking forward to end of irrigation process TPP will add two per cent to NZ economy - US economist

Rural services co-operative Farmlands will proceed with its plan to centralise processing functions into its Dunedin business centre and administrative support in Christchurch.

A year after combining CRT and Farmlands the $2 billion-plus turnover co-operative is taking steps to honour its promise to shareholders it would deliver $38 million in benefits from the merger.

The benefits are expected to come from better buying, leveraging off strength areas of both businesses and removing duplication in business systems and resources.

After taking the proposal to integrate the business to staff last month, Farmlands announced today it would go ahead with basing most of its support network in the South Island.

Its Hastings site would become the Hawke's Bay-East Coast regional centre for customer functions.

Farmlands management are entering stage two of the consultation process with individual staff which they hope to complete by the end of May.

The leadership team would not elaborate on the scope of the second stage or if positions would be disestablished. Farmlands said it could not comment further on a potential outcome until consultation with staff was completed.

Farmlands said the changes, if adopted, would account for 42 per cent of the total budgeted merger benefits, or more than $16m, over the first three years of the merged business.

In the first year after the merger the co-operative had concentrated on laying out its new business model by forming a new executive team and capturing early opportunities provided by its increased business size.

Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content