Rural round-up

July 23, 2013

Synlait Milk jumps 19% in NZX debut after raising $75m:

Business Desk – Synlait Milk jumped 19 percent in its NZX debut after raising $75 million in an initial public offering that was restricted to clients of brokers and institutional investors.

The shares first traded at $2.62 compared with the IPO price of $2.20. They were last at $2.75, valuing the company at $402 million.

Synlait Milk will use the $75 million raised to repay debt and help fund construction of a new lactoferrin extraction and purification facility, an on-site blending and consumer packaging plant, a new dry store, a quality testing laboratory, a butter plant, and a new spray dryer, according to the prospectus. Existing shareholders took advantage of the sale to sell down their own holdings, raising $38.7 million. . .

Strong Chinese Interest in Westland’s New Infant Range:

Westland Milk Products’ launch of its new Westpro NutritionTM range in China on Thursday last week (19 July) was well received with strong interest from customers and Chinese media.

The official launch of Westland’s range of infant nutrition base powders was part of a week-long visit to Shanghai by the company to demonstrate Westland’s commitment to the China market, raise awareness of the Westland Milk Products brand and to promote Westpro Nutrition. . .

International student exchanges opportunity of a lifetime – Pasture to Profit:

International Agricultural Student Exchanges offer an opportunity of a life time experience, few will ever forget. Exchange to another country, another University with a mix of exchangees from many different nations provides endless excitement, friendships & cultural appreciation at an age when you can “suck it all in” big time. I’d like to encourage many more agricultural students to apply for exchanges.

Potential employers look very favourably on any graduate who has taken these opportunities & made the most of them. . .

Entries Open for Next Ballance Farm Environment Awards:

Entries for the 2014 Ballance Farm Environment Awards open on August 1, 2013, and organisers are again expecting strong interest in the popular competition.

Facilitated by the New Zealand Farm Environment Trust (NZFE), the awards promote sustainable land management by showcasing the work of people farming in a way that is environmentally, economically and socially sustainable.

Held in nine regions, the awards are open to all farming and horticultural types. . .

Chair appointed to racing board:

Racing Minister Nathan Guy today announced the appointment of Glenda Hughes as Independent Chairperson of the New Zealand Racing Board’s (NZRB’s) governing body.

Ms Hughes was appointed as Independent Chairperson following consultation with the racing industry.

The racing industry makes an important contribution to the New Zealand economy, generating around $1.6 billion annually and around 17000 jobs. . .

Rotorua to host Maori Forestry Forum:

Registrations are now open for ‘Mai i te ngahere oranga – Māori Forestry Forum’ to be held at Waiariki Institute of Technology in Rotorua on Friday 16 August.

With $2 billion in forestry assets that include land, trees and energy options, Māori are set to become key stakeholders in the future of forestry.

This inaugural Māori Forestry Forum will provide a platform for Māori land and forest owners to discuss their experiences, issues and aspirations for Māori forestry in Aotearoa. . .


Rural round-up

April 18, 2013

Rationalisation of water services supported:

Rationalising water services and placing them at arms-length from local political control, as recommended in a new report is supported by industry body Water New Zealand.

However, the real concern Water New Zealand has is whether the reforms proposed by the expert group looking at local government infrastructure will be implemented (expert’s report released today).

“The need for reform has been known for a long time, but to date little progress has been made,” Water New Zealand’s Chief Executive, Murray Gibb said.

“Ratepayers and taxpayers will get improved services and better value for their money if the reforms are implemented. The proposals accord with industry best practice and should be supported,” he said.

Two other recommendations supported by Water New Zealand, are;
1. that a minister with responsibilities for management of all water related issues is appointed, and,
2. where economically justified, metering and volumetric charging for water are implemented. . .

Praise for NZ’s Tb programme:

A senior UK minister has praised New Zealand for its work in controlling bovine tuberculosis (Tb) during a fact-finding visit over the weekend.

Owen Paterson, UK Secretary of State for Environment, Food and Rural Affairs, said he had enormous admiration for what had been achieved by the TBfree New Zealand programme.

“You are still a society that is much more closely tied to the land and you have had this spectacular success freeing up your agricultural industry,” Paterson said.

“People understand the importance of agricultural production and food production and there are all sorts of lessons to be learned from what you have done.” . .

NZX to target agricultural firms – Christopher Adams:

Boosting the number of listed agricultural firms is one of the NZX’s main priorities and there are about 20 firms in the Waikato alone that could potentially float on the local bourse, says exchange chief executive Tim Bennett.

While agriculture is New Zealand’s largest sector, earning about half the country’s export income, it is under-represented on the sharemarket compared with other industries such as retail and manufacturing.

Bennett said he saw the lack of listed agricultural companies as a problem and an opportunity.

“As a country that’s got a significant export presence in agriculture, we clearly need to provide capital to that sector and at the moment there’s a relatively small number of companies involved in the agricultural sector on the NZX,” Bennett said. . .

Miraka – it’s Maori for milk:

Given the attention that focuses on Fonterra’s every move, it can seem that the huge co-op and the dairy industry are one and the same thing. But despite its dominance, a band of smaller players is surviving – and sometimes thriving – in the giant’s shadow.

One of the newest is a tiny, Maori-controlled dairy company which kicked off late in 2011, quickly turned a profit and already has a waiting list of potential suppliers after just two seasons.

The company, Miraka, runs a wholemilk factory at Mokai, 30km northwest of Taupo, that is already “full” – meaning it can’t take on any more suppliers. The fact that there is a waiting list is hardly surprising, given that it pays 10c per kg over the going rate at Fonterra.

And, unlike the co-operative model, Miraka does not require its suppliers to hold shares. . .

NZ Processing for China win-win – Tim Fulton:

Favourable signals from China’s elite could be just what New Zealand needs to expand its forestry portfolio, a member of the latest trade delegation to that country says. Tim Fulton reports.

Peter Clark, from PF Olsen, has come home from a week-long trip to China convinced New Zealand is moving closer to a stronger domestic milling industry.

NZ has proven its ability to use “rain, soil, sunshine and nitrogen” to turn seeds into logs for export, but the Rotorua-based chief executive wonders whether the timing is right to do more advanced processing at home. . .

Preparing new staff for the season ahead:

DairyNZ is reminding dairy farmers to prepare for new employees as the new season nears.

DairyNZ people team leader, Jane Muir, says people management practices have improved greatly on-farm in recent years, but there are always opportunities to do things better.

“The recent Federated Farmers/Rabobank Farm Employee Remuneration Survey showed 91 percent of dairy farmers provided permanent employees with written contracts – a sharp increase on previous years,” says Jane.

“This is great news because one of the areas where big wins can be achieved is around the staff recruitment and orientation process – the contract is just one part of that. . .

Rural Bachelor is back and this year there’s an international flavour:

The NZ National Agricultural Fieldays is on the look out for hard working rural blokes to represent the farming community  and are calling for entries across the country to the Trans Tasman. This year the competition will consist of eight finalists (six Kiwis and two Australians) who will be flown to a mystery location on Monday 10th June prior to Fieldays, each of the finalists will then make their way to Fieldays, stopping in specific towns along the way to complete various tasks.

The finalists will be judged on a range of aspects from technical skills, innovation, effort to enthusiasm and crowd involvement. They will also participate in heats throughout Fieldays and be judged on their interaction with Fieldays staff and volunteers, their team spirit, helpfulness, conduct and attitude in relation to Fieldays values. . .


Rural round-up

December 6, 2012

Innovative Wellington Entrepreneurs Identify Massive New Wool Markets

A small Wellington company The Formary has a plan that will help China reduce its air pollution, while at the same time creating a potentially massive new market for New Zealand wool.

After China’s rice crop is harvested in the paddy fields, millions of tonnes of rice straw are burnt, causing massive air pollution, closing airports, shutting out the sun and creating health issues for millions of people. Working with Massey University in Wellington, The Formary has developed a rice-straw-wool fabric prototype that could lead to a multi-million dollar business.

The Formary is owned by Bernadette Casey of Wellington and Sally Shanks from Gisborne and the idea is an extension of another product they developed, when they identified the potential of using waste fibre from Starbuck’s vast amount of unwanted coffee sacks and blending it with New Zealand crossbred wool to create fabric they called WoJo®. . .

Government to assist kiwifruit growers:

A package of support measures is to be made available to North Island kiwifruit growers affected by the Psa-V vine disease, Primary Industries Minister David Carter announced today.

Mr Carter has declared Psa a medium-scale biosecurity event under the Government’s Primary Sector Recovery Policy, triggering further assistance for growers dealing with the impacts of the disease. 

“The Government has worked closely with kiwifruit industry representatives to ensure that this declaration is timed to give maximum possible benefit to growers,” says Mr Carter. . .

Help for Kiwifruit Growers as Psa-V Declared an Adverse Event:

New Zealand Kiwifruit Growers Incorporated (NZKGI) welcomes Government approval for a financial and recovery support package, for kiwifruit growers hit by the vine-killing disease Psa.

NZKGI President Neil Trebilco says the organisation has worked very closely with the Government, to firstly extend the coverage of existing adverse events recovery provisions to include incursions on pests and disease, and then get the Psa-V support package approved for kiwifruit growers.

“This will give some growers most affected by Psa a level of financial and welfare support to help them through the impact of this disaster.” . .

Equity raising and change of listing to the NZX Main Board

Today, A2 Corporation Limited (“A2C” or “the Company”) announces that it is undertaking an equity raising to provide additional funding to accelerate the global growth initiatives outlined in the recently announced strategic review.

The Company will issue NZ$20 million in new equity and the Company’s three largest shareholders have resolved to sell a percentage of their holdings in the Company to new and existing investors (together “the Transaction”) at a fixed offer price of NZ$0.50 per new share (“Offer Price”) to provide additional liquidity, contemporaneous with a change in listing to the NZX Main Board, thus facilitating inclusion in the NZX50. . .

Commitment needed by wool growers to ensure sustainable, profitable wool future:

A key objective of Wools of New Zealand is to build the company, evolving within five years to be a fully commercial grower-owned sales and marketing business.

Wools of New Zealand has spent considerable time meeting with all sectors of the industry in New Zealand and internationally building strong collaborative relationships and is now pursing commercial opportunities with supply chain participants for mutual benefit. The Directors are pleased with the cooperation and progress made to date. Wools of New Zealand is, for example, very supportive of the New Zealand scouring industry which underpins the quality and integrity of our fibre which supports the Company’s branded, market-pull strategy. . .

ANZCO Foods’ new Foodplus programme – comments by Sir Graeme Harrison:

ANZCO Foods Chairman, Sir Graeme Harrison, who has worked in the meat industry in various roles since 1973, is enthusiastic about the potential of the new Foodplus programme to enhance business opportunities for the sector.

ANZCO Foods and the Ministry for Primary Industries announced joint funding for the $87million Foodplus programme earlier this week. MPI Director-General Wayne McNee approved funding from the Primary Growth Partnership, which is administered by MPI.

Sir Graeme says it will give a vital boost to the meat industry. . .


Fonterra focus still payout

December 1, 2012

Yesterday was a big day for Fonterra.

Prime Minister John Key opened the company’s new $200m Darfield site.

Shortly before the opening, Fonterra’s units were launched on the stock exchange making  the biggest listing day stag that investors have seen for years.

The non-voting units, which launched at midday today, surged as high as $6.95, a 26 percent stag before closing at $6.85 from an offer price of $5.50. The fund’s turnover was $179.8 million as investors scrambled to get a slice of dairy exporter Fonterra Cooperative Group’s dividend stream.

Turnover in the NZX50 was lower, but substantial, at $175.2 million.

The most comparable float was the December 2011 listing of TradeMe, which rose 6.9 percent on its first day, and was up about 10 percent on its issue price by the end of its first week’s trading, said Andrew Bascand, at Harbour Asset Management.

The fund attracted more trading than the rest of the NZX50 put together and is likely to have been attractive to foreign investors, who took 42 percent of the initial issue of units after Tuesday’s book-build. . .

The price increase amounts to an extra $300,000 in value for the average Fonterra shareholder.

However, in a newsletter to shareholders, chair Sir Henry van der Heyden says the company’s focus will still be on the payout.

TAF was about removing redemption risk and giving farmers some more flexibility but making money from the milk they produce will be of more importance to shareholders than the price of units on the stock exchange.


Rural round-up

August 22, 2012

Award for Omakau farmer :

Omakau farmer Jan Manson has been awarded the 2012 Rabobank business development award for her project to reposition her farming operation for future expansion.   

Mrs Manson received the award at the executive developmen programme graduation dinner, which celebrated the latest business management thinking in agriculture. . .

Sheep, beef sectors look at training - Sally Rae:

A steering group is investigating the possibility of    copying in the South Island the residential training farm model, following concerns about the low level of skilled, work-ready employees in the sheep and beef sector.   

Sarah Barr, of Kyeburn, is co-ordinating a feasibility      project, on behalf of the Central South Island Residential  Training Farm steering group, including conducting a survey  to ascertain if there is an issue and, if so, how it can best  be addressed. . .

Fonterra wraps up record End-Of-Season export quarter:

Fonterra’s record end-of-season quarter has been the Co-operative’s biggest ever May, June and July – with 620,000 metric tonnes of dairy products loaded on ships for export to over 100 markets around the world.

Fonterra NZ Milk Products Managing Director Gary Romano says the Co-operative has shipped 36 per cent more than the same period last year.

“The record milk production in the 2011/12 season has meant Fonterra has exported more product at the end-of-season than ever before. Our teams have done a great job collecting the milk, processing it, packing it, storing it, selling it and shipping it.

“If we were to lay the containers we have shipped this year end-to-end they would stretch from the top of the Bombay hills to Christchurch – which is around 1000 kilometres,” he says. . .

Financial treat for rural schools - Rebecca Ryan:

Five Forks Primary and Omarama School received a financial surprise, thanks to their local farmers.

More than 200 rural schools throughout New Zealand received much-needed money for resources such as books and sports equipment.

Five Forks Primary and Omarama School received some of the more than $4300 distributed to schools from the Hatuma Growing Minds Fund.

Hatuma marketing and sales Aaron Topp said the fund was well received by rural schools.

More than $15,000 has been distributed to rural schools in the past three years. . .

US boot camp tune-up:

A WEEK of high-powered brainstorming was expected to heighten ideas of collaboration among 25 of New Zealand’s leading chief executives from the primary sector. With them was Primary Industry Minister David Carter.  

This august group has been tucked away at a ‘boot camp’ at Stanford University, near San Francisco. They represent the dairy, meat, seafood, horticulture and viticulture sectors.

No ‘industry good’ organisations are there but it does include the chief executives of MPI and NZ Trade and Enterprise. . .

Buffalo and rhino make big money:

MAKING SURE none of the rhinoceros herd is poached during the night isn’t something New Zealand farmers have to worry about but it is typical for an increasing number of South African farmers diversifying into the lucrative game breeding industry.  

After several years of rapid growth, there are now estimated to be more than 10,000 commercial game ranches in South Africa breeding rare species for hunting, meat and conservation purposes.

Kirstie Macmillan of Farm To Farm Tours recently returned from escorting a group of New Zealand farmers through South Africa, Victoria Falls and Botswana. . .

Australia and New Zealand Arrangement to combat illegal logging:

Australia and New Zealand have today strengthened their long standing cooperation on forestry issues by signing the Arrangement on Combating Illegal Logging and Promoting Sustainable Forest Management. The signed Arrangement illustrates a shared commitment to working together to address illegal logging and promote sustainable forest management.

Australia’s Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig, and New Zealand Associate Minister for Primary Industries, Nathan Guy, signed the Arrangement during forestry talks which included discussions relating to the progress of Australia’s Illegal Logging Prohibition Bill 2011. . .

Wise Nutrient Use Rewarded In Ballance Farm Environment Awards

Former fertiliser consultant Jim Galloway takes a scientific approach to the application of nutrients on his Nireaha dairy farm, west of Eketahuna.

Jim and his wife Lynette bought the farm in 2006 and are milking about 170 cows this season on a milking platform of 70ha (effective). The Galloways also own a nearby run-off, supplementing milk income by rearing extra dairy replacements and farming carryover cows.

Jim and Lynette are both Massey University graduates and Jim worked as a fertiliser consultant for nine years before going farming. This experience in the fertiliser industry is valuable when deciding the farm’s fertiliser policy. . .

Zespri keeping tabs on vine bacterial infection of gold varieties:

 Zespri International, which controls exports of the nation’s kiwifruit, is keeping tabs on the spread of vine bacteria disease Psa-V which is showing signs of infection in new gold varieties.

Listed kiwifruit packer and grower Satara Co-operative Group has warned its shareholders of the potential adverse impact Psa-V could have on its business. Pseudomonas syringae PV actinidiae is again showing clear evidence in orchard vines, Satara managing director Tom Wilson said in a statement to NZX. . .

Grape growers are on target for improved profitability

The Ministry for Primary Industries (MPI) has today released an analysis of viticulture production and profitability as part of its annual Farm Monitoring Report series. The report is based on models of a Marlborough and a Hawke’s Bay vineyard and an overview of the financial performance of typical vineyards, based on information gathered from a sample of growers and industry stakeholders.

Grape growers experienced significant erosion in profit last season, with unfavourable weather in both Marlborough and Hawke’s Bay leading to a 20 percent drop in average yields. . .

NZX confirms slump in 1H profit; Agri information stands out as bright spot:

New Zealand’s stock market operator, posted a 28 percent drop in first-half profit as revenue growth stalled and expenses rose, squeezing its earnings margin.

Profit was $3.25 million in the six months ended June 30, from $4.5 million a year earlier, the Wellington-based company said in a statement. Operating revenue rose 1 percent to $26.5 million.

The first-half results confirm NZX’s Agri information unit as the biggest source of revenue, growing 8 percent to $6.2 million in the latest period, driven by growth in subscriptions, while advertising revenue was little changed at $3.76 million. The company expects subscription growth to continue in the second half, when it typically enjoys the benefit of a seasonal pickup. . .

Long-term investment in NZ kiwiberry industry:

Freshmax NZ Ltd is the holder of the exclusive New Zealand master kiwiberry license, granted by Plant & Food Research (PFR) to commercialise four of their proprietary kiwiberry varieties. This month, Freshmax welcomes the decision by select growers to advance these varieties into commercial production in New Zealand.

Over the last few years global demand for kiwiberry has continued to rise on the back of a sustained increase in market share for berryfruit. Freshmax has recognized this exciting opportunity for New Zealand growers to benefit from increasing demand, through investment in kiwiberry production. . .

Skip the sheep can shake a leg again - Sally Rae:

First Tarras had Shrek – and now Tapui has Skip.   

And if Skip the Romney ewe was a cat, she would probably be down to about seven lives.   

Farmer John Dodd did not think the little triplet, born on a  cold and frosty night in rural North Otago, would survive its first night if left outside and took her home. . .


NZX plans June launch for milk futures

February 9, 2010

NZX is to launch its first dairy futures market in June.

Exchange derivatives manager Katherine Jaggard said interest had been high, both locally and internationally, which was an indication the dairy sector lacked such risk management tools compared to other traded commodities, like grain and coffee. . .

 . . . Farmers were interested in hedging their income against price fluctuations, but initial activity was expected from others in the industry, such as processors, buyers and traders. . .

Eventually, she would like dairy farmers to view the NZX dairy futures market on a daily basis, as they did now with the exchange rate.

“We see the exchange rate every day. It would be great to see the whole milk powder price every day.

“The data would be helpful to farmers. It would give them an idea where demand levels are,” she said.

I can see how hedging might appeal and that this market might be of interest to investors but I’m not sure if knowing the day to day demand is going to be useful to farmers.

If you’re producing widgets you might alter the supply at the whim of the market but milk harvesting isn’t like producing widgets.

A consistent trend in the price might help with a decision on whether or not to feed supplements but you can’t turn milk supply on and off to take advantage of market fluctuations.


NZX to launch milk powder futures’ market

June 4, 2009

NZX plans to offer a market for trading whole milk powder futures.

New Zealand supplies around 40 percent of the global whole milk powder market and market volatility had led to demand for a risk management tool similar to other commodity markets.

“It’s a natural fit for New Zealand to host the trading of milk derivative contracts, and to meet the global demand for risk management tools in the dairy industry,” NZX Head of Traded Products Fiona Mackenzie said in a statement.

Last month it was rural media, this month it’s rural produce.

It might be a good move for shareholders, I don’t think it will have any benefits for farmers and wonder if it’s another example of what Cactus Kate  calls: “making hay from a collection of other land-owners’ paddocks while the sun is still shining”.

Although, the sun isn’t shining on dairying at the moment.


What’s holding them back?

May 22, 2009

The statistics supporting the business case for having women on company boards  are compelling:

For companies in the top 25% (of highest women’s representation on the board) the return on equity was 53% higher; return on sales 42% higher; and return on invested capital is 66% higher than companies in the bottom quartile.

Of course statistics tell only part of the story – it’s possible that these companies performed better in spite of the women on the board rather than because of them.

It’s also possible that having women on a board is a sign of the intelligence and foresightedness which results in a well run and high performing company.

But regardless of the story behind those stats it does seem strange that women make up 46% of the New Zealand workforce but hold only 8.65% of directorships on the NZX top 100. Just 45 women hold 54  of the 624 board positions available and 60 of the top 100 boards have n0 female directors.

That’s been recognised by the Ministry of Women’s Affairs, The Institute of Directors and Business NZ who launched a joint initiative last night to promote the economic benefits of having more women on boards.

A lot of women are actively involved in private rural businesses. Many farms are husband and wife partnerships, so are a lot of the small businesses which support farming and Rural Women’s Enterprising Rural Woman Award highlighted some of the successful rural businesses run by women.

There are plenty of urban business women too so it’s not lack of skills and experience which is holding them back.

The April edition of Next magazine opened a story on the issue with this:

The chairman of a large Kiwi agricultural company is asked why there aren’t any women on his corporate board.

“There’s no place for sheilas in this conservative, provincial boardroom, apart from making the tea,” is his gobsmacking response.

I’d hope that attitudes have changed for the better since this comment was made seven years ago but that still hasn’t translated into an increase in female directors.

What’s holding them back?

Are women choosing not to put themselves forward or  are they not being accepted when they do because, regardless of qualifications and experience, having a y chromosome makes some candidates for directorships and management more equal than others?

P.S.

The Hand Mirror posted on the MWF/ID/BNZ joint initiative when it was first announced.


Hidden agenda in NZX purchase of CPL?

May 6, 2009

I greeted uncrtically the news that NZX was buying Country-Wide, publishers of most of of the papers which get delivered free to rural mail boxes, including my favourite NZ Farmers Weekly.

Others aren’t so innocent.

Cactus Kate finds some sharp knives in the NZX Haystack .

Jenni McManus reports  that Trans-Tasman editor in chief Max Bowden has made a Commerce Commission complaint because he thinks NZX is trying to act as regulator in a market in which it would be a participant.

At issue: whether an organisation calling itself a regulator should be cornering the market in anything, let alone a commercial enterprise, by acting as both a player and the market enforcer.

Adolf at No Minister smells something fishy and asks:

How can it be that the regulator of share trading activities in New Zealand companies an be allowed to itself operate trading companies which are not part of its core activity, namely regulation? What happens when one of its own companies transgresses?

Roarprawn also smells something whiffy and agrees with Fran O’Sullivan who questions why the stock exchange is putting on gumboots.

Expanding into publications during the economic downturn is a bold move.

The Cross memo explains that the NZX is getting into an “advertising-reliant media publication” in this climate. She contends print media are the best way to contact farmers while internet access remains slow and inconsistent for rural New Zealand.

“This protects to a certain extent rural publications from the downturn in advertising in mainstream/daily media publication and, second, farmers’ behaviours as the majority still read physical papers instead of accessing the internet for their news and information.”

The memo predicts it will be more than five years before farmers swap to online news services.

I’m not so sure about that, improvements to rural boradband services are moving quickly. We’ve got wireless broadband but discovered by accident we could get a much better service through the phone line now.

I’ve always used “you don’t do rural broadband” to put off people wanting us to change to telephone providers. But when I used that line with a cold-caller on Monday I was told they did and we could get broadband access via our phone line. I phoned Telecom to check and was told that our exchange had been upgraded and our phone line could now deliver broadband.

If that service is as good as promised more country people will turn to the internet for news rather than waiting for the papers which come with the mail – which for us isn’t until early to mid afternoon.

This point is made by Quote Unquote who also has questions about the NZX purchase of CPL.

. . .  there are some astute comments about magazine publishing in general which Weldon could consider – in particular, Rundle’s key line:

To go into the magazine trade now is like starting a stable just as the first Model T Ford rolls off the line.

We’ve been getting a regular stream of change-of-address emails from farming friends who have discovered they no longer have to rely on dail-up access to the internet.

The service we get in the country still doesn’t deliver the ultra-fast speeds available in cities, but it won’t be far away and when it comes, our readinghahbits will change.

You can’t tuck a PC into your back pocket as you do with a paper when you’re heading up the back paddock . But if you’ve already read the news on the net  over breakfast you won’t need to.

The question of who’s going to pay for the news on internet will wait for another day.


NZX buys Country-Wide Publications

April 28, 2009

Country-Wide Publications is being sold to NZX for an undisclosed sum.

CPL Owners Dean Williamson and Tony Leggett, who bought CPL in 1997, have grown the business to produce 78 publications a year under seven mastheads, and from a turnover of $250,000 in 1997 to over $7 million in 2008. CPL publications reach all 86,000 farmers in New Zealand at least once every week.

Roarprawn doesn’t think it’s a good investment, but I do.

Fielding-based CPL publishes several rural papers including NZ Farmers Weekly, Country Wide South and Country Wide North and the recently acquired Dairy Exporter.

All are give aways which are delivered to rural mail boxes and all are quality publications which concentrate on rural news, issues and features. Unlike some giveaways the majority of their stories are fresh rather than rehashed press releases, are well read by farmers and attract good suppport from advertisers.

The CPL media relesase says:

Dean Williamson said, “This is an exciting next step for both the CPL business and the rural sector as a whole. Bringing NZX and CPL together creates a raft of new opportunities. Both are innovative companies focused on growth.”

Tony Leggett said, ” We understand our market and our business model reflects that. We give farmers the information they need, and astute advertisers appreciate that. We focus on value.

“Print media remains the right medium to reach farmers at this point in time. As we see increased broadband penetration in rural areas, we are likely to see more interest in our online offerings and will continue to develop products in this space,” said Leggett.

CPL operations will remain based in Feilding, managed by Dean and Tony. “This is a long term investment in the New Zealand rural sector,” said Weldon.

This isn’t the NZX’s first foray into rural business, it already owns Agrifax,  Dairy Week and Pro-Farmer Australia.


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