Strong Milk Price Boosts PGG Wrightson Earnings
Strong farmgate milk price is helping boost investment on farms, says PGG Wrightson chief executive Stephen Guerin.
The rural trader, which marked the milestone birthday last week, is the result of a 2005 merger between Pyne Gould Guinness Ltd and Wrightson Ltd, which were both amalgamations of numerous companies.
A Legacy Dating Back to 1841
The first of those companies was Levin & Co, founded in Wellington in 1841.
Guerin says the anniversary is an opportunity to acknowledge and commemorate the efforts of its predecessor companies.
“When the company first established, no matter which strand of the organisation you think about when you look back at the history, it was very much a regional business,” Guerin told Rural News.
He says the country’s transportation network was largely built on coastal and regional shipping.
Adapting to a Changing Industry
“We’re still doing some of the things we did way back then,” he adds. “But we do things differently than the way we did back then.”
Guerin points to the company’s online trading platforms, and the advice it gives to farmers and growers, saying those have changed since the company’s forebears were established.
Relationships at the Core
He says it’s relationships between farmers and PGG Wrightson staff that have carried the business through the past 175 years.
During that time, the company has witnessed the rise in corporate and iwi farming enterprises.
“It does come down to the key relationships our staff hold,” Guerin says.
Reflecting Social and Industry Change
Guerin says the company reflects social change that has occurred within New Zealand.
“It took 100 odd years for us to employ our first female staff member. Now, why did that happen? There was social change that took place around World War II when more women entered the workforce. Now we’ve got a large number of women in our team.”
Guerin says that over the time the organization has been in business, many lessons have been learned.
“Farmers take a longer-term view, so trust is really important.
“Being reliable in what you say and how you deliver to that is really, really important.”
He says the company has had periods within its history where they haven’t delivered on that, but they’ve subsequently learned that lesson.
“I reflect back to a short period just after the merger where we brought three businesses together in a very quick space of time and we lost our way a wee bit there for a year or two. We’ve learned from that and re-established who we are.”
Built to Endure
So, why has PGG Wrightson stood the test of time? Guerin says it’s the company’s staff and the relationships they have with their customers.
“Being responsive to the needs of our clients, through those droughts, weather, storm, commodity cycles, and being consistent about that and being supportive of our rural communities is why we’ve survived.”
