Local policy retains loyalty
How do businesses future-proof themselves? takes a look at older businesses in rural communities to find out what keeps them ticking along.
Sticking resolutely to its ’’keep it local’’ guns is paying off for one rural Southland firm.
The benefits of locally sourced produce for physical, environmental and community wellbeing are well documented these days, although generally the focus is on human consumption.
At Udy’s Grain & Feed in Wyndham, they believe exactly the same principals apply to its range of stock feeds, and make it a key point of difference to manufacture the majority of its products fresh on site using locally sourced ingredients wherever possible.
This policy, alongside steadfastly siting themselves in the deep south rural heartland of Wyndham, is the company’s formula for enduring and future success, owner-operator Ross Norman says.
‘‘Small rural businesses like ourselves employ locals meaning money remains in the local economy. Our policy is also to source as much product as we can in Southland - even if it’s off the competition - so money stays down this end of the country,’’ he said.
‘‘We produce fresh, meaning we don’t use any inhibitors to prolong shelf life in any of our feeds.’’
It was equally important for businesses to give a little back to their communities, Norman said.
‘‘We sponsor any number of local activities including the Wyndham, Edendale and Tokonui rugby clubs, local schools and pool. Then there’s farming-related activities like Wyndham A and P, dog trials, et cetera, plus a couple of individuals we sponsor.’’
‘‘It’s hard to quantify what you get back from sponsorship but you do need to be out there in the com- munity.’’
‘‘Our base recipes are designed by Grant Richards, of Newtrition Solutions, in Tauranga.
‘‘Then you get a situation like last season when we added vitamin B to all our calf feeds because there are a couple of areas locally where conditions tend to cause a deficiency. In fact several customers have us put additional inputs in their feeds to suit their particular operations.’’
Established on its present site by Lyal Udy in the early 1990s, the business predominantly made mashes and meals.
After Lyal passed on, his son Russell took over the helm and installed a pelletiser, allowing the sheep and dairy industries to be served.
The business changed hands a further couple of times before landing with the Normans - Udy’s is coowned with Norman’s wife Karen - in August 2014.
From the beginning of their tenure, Udy’s had relied heavily on the dairy industry to create turnover, Norman said.
‘‘The biggest challenge for us is being so heavily tied to the dairy payout. In a lot of ways we’re not in control of our own destiny, so we’ve increased our range of products outside of that industry to try and offset any hiccups in the payout.
‘‘One aim this summer is to find a suitable outlet for our other products in Invercargill, such as hen feed, to improve turnover in our quieter periods.’’
‘‘I’d say the key success so far is a great improvement in volume of product coming through the plant, leading to turnover increase and overhead decrease,’’ Norman said.