Marlborough Express - Weekend Express
Farmlands aims to expand
Farmlands is planning to buy SealesWinslow from Ballance Agri-Nutrients to expand its national animal feed business.
The potential purchase would create a national animal feed business with three well known and complementary brands – NRM, McMillan and SealesWinslow.
Farmlands chief executive Tanya Houghton said in an email update to shareholders recently that this was a positive step for Farmlands.
“Early in 2023 we set a goal to become number-one in animal nutrition in New Zealand.
“Having SealesWinslow join us makes this a reality.
“It also supports our key focus; improving our ability to provide the key on-farm inputs you need,” Houghton said.
SealesWinslow was established in Morrinsville in 1968 by Rae and Bev Seales, but has been 100% owned by fertiliser company Ballance Agri-Nutrients since 2013.
Creating a stronger, combined feed business would work for Kiwi farmers, as Farmlands could streamline operations, reduce duplication and combine its people and assets, Houghton said.
“SealesWinslow already produces significant volumes of animal nutrition products for Farmlands in the North Island, so we know we work together well.”
The purchase of SealesWinslow meant the feed mills would stay in the ownership of a New Zealand co-op, ensuring that local farmers maintained control of this critical
part of the food production supply chain.
It also meant that Farmlands would become an even stronger employer across New Zealand’s rural communities, with five regional production teams around the country.
“The timing for a deal like this is never perfect.
“It’s a bit like buying the neighbours’ farm – you know it’s the right thing for the long term, so you work hard to make it happen.
“It’ll set us up to deliver on our promise to be the number one buying group for core
farm inputs and position our feed business for future growth and success.”
Before the sale could proceed, it would have to go through a Commerce Commission process – which Houghton believed would be completed by early 2024.
“We’ll be working closely with Ballance, alongside the Commerce Commission, to make sure that we take all the steps needed to get this purchase across the line.”
Houghton said she would share more information about this exciting development when the deal was approved.
“Key for me is ensuring our combined animal nutrition business results in better value for you.”
Farmlands was formed by farmers for farmers more than 55 years ago.
In 2013 it merged with CRT (Combined Rural Traders) to become one entity.
Farmlands was the largest buying group of its type in New Zealand, transacting more than $2.5 billion dollars annually and was listed in the top 20 companies by turnover in New Zealand.
This buying power helped reduce the input costs of more than 70,000 Farmlands shareholders nationwide.