New system to benefit Farmlands’ shareholders

Farmlands will streamline its operation with a new computer system to be rolled out later next year, chief executive Peter Reidie says.

Called ‘Braveheart’ the programme is about uniting the clans and putting the success of shareholders at the forefront of the business.

Reidie worked for Lion Breweries, Campbell Soups and Goodman Fielder, both in New Zealand and overseas, before taking up his current position almost three years ago.

He told shareholders at a meeting last week that a new computer system was expected to be rolled out in November 2019.

‘‘Stage three of eight has been completed.

‘‘It will improve our systems and processes and how farmers view their statements and pay their bills,’’ Reidie says.

Farmlands is one of the country’s largest rural supplies co-op’s with about 1000 staff in 82 stores servicing 68,000 shareholders.

Reidie says are currently many varied computer systems and processes in place because of the merger between Farmlands and Combined Rural Traders (CRT) in 2013.

‘‘The programme we’ve got in place will take two years from start to finish.

‘‘We’ve called it Braveheart because it’s about uniting the clans and putting our shareholders’ success at the forefront of what we do.’’

The new computer system will improve point of sales and pricing and enable the co-op to benchmark farmer spending, he says.

‘‘We’ll be able to better understand farm inputs and farmer behaviours.’’

Reidie says the co-op is expecting to deliver a ‘‘significantly better’’ financial result this year. However, the results are subject to audit and sign-off from the Farmlands board before they can be released to the public, he adds.

According to its website, Farmlands has a turnover of more than $2 billion each year.

Reidie says the co-op is in a much better position than it was two years ago when it suffered a $9 million loss.

‘‘There was no single reason, It was lots of little things. The low dairy pay-out, low lamb prices, which had an impact on farmer spending, and the bedding down of the merger.’’

Reidie says farmers are good at adjusting their budgets when times were tough.

‘‘Instead of replacing the pump they’re fixing the pump and keeping the tractor for another year. They’re also managing their grass better instead of using supplements and putting up with the hole in their redbands.’’