New Zealand needs a strong agricultural servce sector, and since the amalgamation, PGGWrightson have promised a lot, but disappointed often.
Major disasters have been it's investment in NZ Farming Systems Uruguay, and the failed deal with Silver Fern Farms. The brand has been damaged, sometimes because the company believes the brand is bigger than the quality of the people in it.
Farmers follow the man not the brand, and build a trust with an agent, and will stick with him, as long as that trust is not broken. The expansion of the many smaller stock firms up and down the country are evidence of that.
The company now has a big debt and shrinking market share, so this restructure is very important for it to rebuild, and for it to participate in NZ agriculture's prosperity.
Rural services firm PGG Wrightson is streamlining its business divisions in an effort to unlock investor value in the company.
The Christchurch-headquartered firm said it was slimming down from three divisions into two business divisions of Agriservices and AgriTech to enable smoother planning in each division.
The agriculture sector remained cautious, chief executive Tim Miles said. The two bosses of the new divisions, Michael Thomas (Agriservices), and John McKenzie (AgriTech), will be based out of Canterbury, with group general manager of customer services.
The customer services and financial services division will be combined in the Agriservices division led from July 2 by Thomas. The division, with around 70 to 75 per cent of the company's revenues, will encompass rural supplies, fruitfed, livestock, irrigation and pumping, Agriculture NZ, finance, real estate and insurance.
The AgriTech division – 25 per cent of revenue – includes the seeds, grain and nutrition businesses and will be led by McKenzie, the current group general manager seed, grain and nutrition.
PGGW shares closed 1 cent higher at 54c within a 12-month range of 52c to $1.36.
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