Farmlands going off the rails?
Rural retailer and supplier Farmlands is being accused of going off the rails and shareholders are being urged to take back control of the co-operative.
Farmlands chief executive Tanya Houghton admits that the rural retailer is making a number of changes to its business model.
However, she told Rural News it is all aimed at making the co-op the number one rural buying group in the country.
"The purpose of the co-op is to offer our farmer customers and shareholders the best value we can for the products they need," Houghton explains. "The model we have been operating is cost heavy and unless we change how we buy products and deliver to farmers we will become obsolete."
She admits that Farmlands is making changes to the number of items stocked in its stores - downsizing from 45,000 to 9,500 - but says this is not about lessening competition but getting better value for customers.
"Scale is needed to buy stock at the best prices for farmers and scale means direct sourcing and providing better value for our customers."
Chief merchandising officer Chris Fisher told Rural News holding so much stock was costing farmers. He gave an example of the co-op stocking 12 different types of mouse traps, which he says was clearly inefficient.
"As a buying group we need to ensure that we offer our customers the best products at the best prices and to do this there needs to be some consolidation of stock."
Despite admitting that the co-op was consolidating its stock, both Houghton and Fisher say if a farmer wants a particular brand or product that is not in store, Farmlands can still secure it for them.
"It just means that it may not be available instantly and the price will not be as good as the product in store," Fisher adds.
Houghton says data is used in Farmlands deciding which products to stock and at what stores. She added that the co-op had invested $90 million in software to help with making these decisions.
"It is a more sophisticated and efficient way of buying and means we are offering farmers the products they want at the best prices," Fisher adds. "It's a mix of art and science based on fact-sourced data."
On the subject of 'rebates' paid by suppliers to Farmlands, Houghton says this is no secret and all part of normal supplier and retailer relationships.
She denies it means the customer paying more for products and bigger margins for the co-ops.
Houghton says the co-op will be running roadshows around the country from December to March to better explain to farmers and shareholders its changing business model.
A calf born at a Waikato Holstein Friesian stud has stunned her owner with her incredibly high credentials – surpassing his hope that she was going to be one out of the box.
Genetics may be one of the tools Fonterra farmers can tap into to reduce on farm emissions, according to LIC.
Agriculture and Trade Minister Todd McClay plans to visit India in the next fortnight, his first trade mission since the formation of the Government.
Australia's largest dairy co-operative Norco is back making ice cream, 18 months after a catastrophic flood destroyed its manufacturing plant.
Danish dairy co-operative Arla Foods is accelerating sustainability efforts on farm to help customers achieve their reduction targets for scope 3 emissions targets.
While New Zealand seems to be treading water on the subject of pricing emissions and the future of He Waka Eke Noa (HWEN), pending a new government, the Netherlands has been clearer on its proposed farm buy-out scheme, as part of its effort to reduce nitrogen emissions by at least 55% by 2030.
OPINION: This old mutt understands that a number of high profile sheep studs are unhappy with Beef+ Lamb Genetics’ recent…
OPINION: Your canine crusader is astounded at the sheer cojones of webbased media company Newsroom and its wont to cadge…