What goes round . . .

The proposed merger between PGG Wrightson and Silver Fern Farms riled some farmers so much they took their business from PGW.

That loss was Combined Rural traders’ gain and is one of the reason the co-operative did so well last year.

However, what goes round comes round. CRT’s purchase of a livestock company has upset SFF and prompted it to take its business away from the co-ooperative.

Business is business and any company has the right to enter the market. 

CRT has a large client base and will be counting on that to give them a good start. However, the livestock market is already crowded ansd success in the business relies on strong personal relationships between agents and clients rather than brands.

The challenge for CRT, like every other stock firm,  will be to employ the best people in the field.

2 Responses to What goes round . . .

  1. gravedodger says:

    The decisions of both management and governance in rationalizations and restructurings of large rural service entities always seem to misunderstand the loyality factor of the client base. I accepted a position with Dalgetys in a rural NI town in the 80’s after the merger with Farmers and on the eve of further merging with Elders Pastoral, as part of our personal asset protection plan following Sir Rogers earthquake. I watched with wonder and dismay at the ineptitude and devastation that policies proceeded to wreak on staff and company value. most of the best staff in livestock, merchandise and Insurance took the best clients in their divisions and set up independent operations. These nearly all became successful companies while all that was left for in my case Elders was a book of the poorer operators and the financially challenged clients. A significant number of loyal clients of rural service companies are with their company of choice for very deeply held reasons and invariably see such mergers etc as a sellout to their “enemy”, and this factor is always missed or ignored by the perpetrators of the “deals”.

    Like

  2. homepaddock says:

    The experience you describe isn’t unique to those companies or times. The perpetrators also miss, or ignore, the lessons of history.

    Like

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