Farmlands half-year results 'show strong progress'
Farmlands says that improved half-year results show that the co-op’s tight focus on supporting New Zealand’s farmers and growers is working.
Today, as it celebrates its half century, it has an annual turnover of $773 million, almost 28,000 shareholders and 47 stores throughout the North Island.
The rural retail giant started in typical kiwi fashion with a cup of tea in the Eskdale Hall in rural Hawke’s Bay on December 17, 1962.
Chairman Lachie Johnstone says the original 22 members, whose first year turnover was £2,148.11.4d, held high hopes but were unaware they would set the foundations for one of New Zealand’s most successful rural trading enterprises.
“Much has changed since its origin in a generation of protectionism and very strong margins in the supply of rural goods and services,” says Johnstone. “We now operate in an industry where transparency of information is a given and competition is fierce.”
Farmlands was established when a group of entrepreneurial farmers and growers joined forces to secure the best possible prices on rural supplies for their farms and orchards. Their two objectives were to supply shareholders with products and services at a lower price and to deliver long-term shareholder returns.
Chief executive officer Peter Ellis says 50 years on that hasn’t changed.
The half century celebrations include 50 days of savings, giveaways and a chance to win a Ford XR6 at Farmlands’ retail stores up until November 13, and all Farmlands branches are inviting shareholders to watch the Melbourne Cup at their local branch. Celebratory memorabilia includes the production of a book documenting the company’s history called Our Story – Celebrating 50 Years of Farmlands.
“It details the progress of the cooperative over the years, including the difficulties facing the early founding members, and the changes in recent history that have seen rapid expansion and success,” says Ellis.
The founding members were renowned innovators. In 1962 the business model they proposed was considered daring, although soundly based on the good old-fashioned values of a cooperative society.
Farmlands shareholders literally become an owner and partner in the business, so success was a win-win situation.
Johnstone and Ellis, as today’s leaders, attribute much of Farmlands’ success to the people at the grassroots level – the 500 plus staff who deliver the Farmlands promises of value and service to shareholders.
Ellis says the Farmlands team are pivotal in supporting the recovery of the country’s rural sector.
Today close to 28,000 shareholders enjoy special prices when they shop at Farmlands and receive exclusive offers at Farmlands Card Partners throughout New Zealand. Any profit made – beyond what is needed to grow the business – is shared out as an annual bonus.
