Another Ravensdown Aussie withdrawal

Negotiations announced last week to sell the 4000 member, 39 employee WA operation are part of a wider strategy review which saw it sell its WA agrichemical business in April, and South Australia joint venture Direct Farm Inputs in February.

Chief executive Greg Campbell, who joined the Christchurch cooperative in February, says latest year-end results from the WA business are still being audited but an operating loss of $9m looms, on the back of three previous years of smaller losses.

"A clear action plan to turn around that business over the last year was implemented, but the business still made a loss. Any on-going losses are unsustainable because, as a co-operative, each part of our operation ultimately needs to stand on its own feet and contribute."

Campbell says a strengthening balance sheet and increased profitability will enhance New Zealand shareholders' access to "quality fertiliser at lowest sustainable cost" and reduce risk and debt. Working capital debt is forecast down $150m.

Ravensdown's Queensland operation is not part of the discussions.

Late last month the cooperative announced a tie-up with Mid Canterbury rural retailer ATS, to provide a nationwide charge card service, Ruralco.