CRT’s profit at PGW’s expense?

Rural supplies co-operative CRT has posted a record annual result with a 39% growth in revenue in the year to the end of March.

The record dairy payout and better returns for sheep, beef and cropping farmers last season boosted farmers’ spending power which will have contributed to the good result.

However, PGG Wrightson which operates a similar businesss hasn’t performed nearly as well and is expecting a decline in its profit.

It’s blaming its exposure to dairying for this but I wonder if it is also a result of its unsuccessful attempt to take a 50% shareholding in Silver Fern Farms?

That angered a lot of farmers who voted with their chequebooks and shifted their business to CRT.

If that’s right then CRT’s profit has come in part at PGW”s expense.

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