Plummeting sales forces C-Dax to cease trading
Farmer-owned co-operative Ravensdown is winding down the operations of its agritech subsidiary C-Dax following a long decline in sales.
Chief executive Garry Diack says it has begun consulting with potentially impacted employees and their representatives.
The number of employees set to lose their jobs will be finalised by the end of this month.
Diack says the last 18 months for food and fibre production in New Zealand have been challenging.
“Weather disruption and increasing costs (fuel, interest rates, and volatile fertiliser prices), means farmers and growers across New Zealand are buying significantly less fertiliser,” he says.
“Our projected sales volumes for this financial year are looking to be significantly down on the previous financial year, and it is unlikely that fertiliser demand will return to traditional levels in the immediate term.
‘In light of these challenges Ravensdown has reviewed our business model to realign it with reduced demand, and to ensure continued investment in capabilities required for future support of our farmers and growers.”
Diack says Ravensdown has a strong balance sheet, and this review is designed to realign its operating model and capabilities to changes in the industry and market.
“To be clear, this is not a consequence of the impact of Cyclone Gabrielle on our Hawke’s Bay operation at Awatoto.
“We are actively planning for a resumption of manufacturing at Awatoto in the near future following rejuvenation of the site from flooding, and we remain committed to the region as a significant employer and partner.”
