Fonterra to invest in Taranaki stores
Fonterra’s RD1-branded store in Waverley will be demolished and rebuilt as a Farm Source hub as the dairy co-op makes a significant new investment in its retail offering in Taranaki.
The co-op has shared with its farmers and staff a proposal to build four new, purpose-built sites and refurbish two others, over the next two years.
Farm Source Taranaki boss, Scott Walls, said the proposed investment was part of the nationwide transformation from RD1-branded retail stores to Farm Source hubs, which has been ongoing since 2015.
‘‘Our strategy is to make Farm Source a hub, with a comprehensive retail offering along with facilities for farmers and the community to use for meetings, support and advice, financial tools, online services and a loyalty scheme.
‘‘It’s making a real difference to farmers’ bottom lines already. In the last year, the average sized Fonterra farm earned approximately 10 cents per kg/MS in savings and rewards if they purchased farm supplies exclusively with Farm Source.
‘‘We are committed to Taranaki, and this is an investment by Fonterra in the region. It will improve the stores’ facilities and presence, but it’s more than just a paint job and a name change -- it’s about staying ahead of the competition and delivering more value to farmers who use our stores, in an increasingly competitive retail environment,’’ Walls said.
Fonterra’s proposal is to demolish and rebuild its Waverley store in the same place it is today, merge its Stratford and Eltham, Kaponga and Manaia, New Plymouth and Pungarehu stores into newly-built ones nearby, and refurbish its Waitara and Hawera stores.
The two other stores in Taranaki – Inglewood and Opunake – have already been upgraded, with Inglewood shifting into a brand new, purpose-built store, similar to the other proposed new stores, last year.
In addition to a farm supplies retail centre, the Inglewood and Opunake hubs feature facilities that include a drop-in space with coffee and wi-fi, meeting rooms for use by farmers and by community groups and for roadshows and seminars, and offices for Fonterra staff.
The proposal is not expected to be fully confirmed for some time, due to complexities in securing land and locations, resource and building consents, and the actual developments themselves. Fonterra expects there will no changes for at least 12 months.
Launched in 2014 to bring the co-operative closer to its more than 10,000 suppliers, Farm Source offers farmers financial rewards and discounts on the purchase of of farm supplies and services and includes digital technology services for farmers to manage their Fonterra business.
At the time of the launch, chairman John Wilson said as a co-operative, Fonterra already had plenty of unity and collective strength but Farm Source was about taking its relationship with farmers to a new level through connected services and support systems.
The co-operative has more than 70 Farm Source hubs around the country, including those in Taranaki.