“The goal of the Ruralco card is to make things a little easier for farmers to support their community’s suppliers and pay less than they otherwise would,” says ATS chief executive Neal Shaw.
“It’s about utilising our expertise in card services and [Ravensdown’s] customer base.”
Ruralco won’t be “just signing up the large chains” but going the extra mile to work with small local businesses, hopefully helping stem the loss of such operations from provincial towns, he adds.
“We’re more interested in working as part of the community.”
Another key difference with CRT Farmlands’ card service is that only bonafide farmers, not urban or lifestyle block holders, will be eligible for a Ruralco card, says Shaw.
The move has nothing to do with the CRT Farmlands merger which went through in February this year.
“It’s just a coincidence…. There are two things I have stressed at recent (ATS) shareholder meetings: this is not a merger of Ravensdown and ATS and there’s not likely to be; and this is not a response to the CRT Farmlands merger.”
An agreement with Ravensdown on the Ruralco initiative was signed in September last year once ATS had done due diligence on selling its card services arm into the new joint venture.
The deal is only for card services, and ATS will continue to sell Ballance fertilisers, and animal health and agrichemical products which compete with Ravensdown’s ranges, says Shaw.
There are no plans to extend ATS’ retail operations – it has stores in Ashburton, Rakaia and Methven – as a result of the deal.
The card is being launched to ATS and Ravensdown shareholders across the central South Island and West Coast initially, extending to the whole South Island by the end of the year and into the North Island early next year.
Shaw points out that despite the CRT Farmlands merger, CRT’s card is still South Island only, and Farmlands’ card North Island only. In his view, it will be “some time” before they manage to merge their IT platforms and offer a nationwide card service.
“Here [in Ruralco] we have two established co-ops joining forces without the need for expensive mergers or messy re-organisations.”
The card is a ‘no-frills’ approach for real farmers with no gimmicks or points, he adds.
“We offer true then-and-there discounts negotiated with suppliers who value rural custom. It’s basically everything ATS members have enjoyed from their ATS card, but Ruralco takes this to a national level.”
Ravensdown chief executive Greg Campbell says it is vital that the card service stands on its own feet from a financial point of view.
“This does not distract us from our total focus on delivering nutrient management services, fertiliser and other key inputs at lowest cost on a sustainable basis. We saw a chance to collaborate with another leader in the industry for mutual benefit.
“As much as possible, Ruralco is using the existing systems, technology and staff at ATS. We just help by bringing the added buying power.”
Using the card will be like using a credit card. Any discount will be applied at point of purchase, with payment due 20th of month following via Ravensdown or ATS statements. Existing ATS cardholders will receive Ruralco cards in the post.
“For them it is business as usual,” says Shaw.
Shaw is chief executive of Ruralco. Mid Canterbury dairy farmer and Dairy NZ director Alistair Body is chairman.
