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.
Talking to Rural News – a month after taking up the reins from predecessor Rodney Green, who had been in the role 17 years – Campbell said he wants to start with a clean sheet of paper.
“Looking internally as a company we have a very strong foundation: an experienced management team and a very motivated board of directors who in turn are driven by our farmer members.… The staff are highly intelligent, a committed bunch of people looking to improve the productivity and livelihood of our farmer members.”
Campbell says he’s “been all over” visiting Ravensdown sites and shareholders on both sides of the Tasman, and a number of key suppliers. “And I’ve been to Wellington a couple of times on top of that.”
As a result, he says he sees Ravensdown’s technical capability, member loyalty and longevity as an organisation as its core strengths. The controversial expansion into Queensland, South Australia and Western Australia, has “been tough; there is no secret about that,” he adds. “We’ve got a wee way to go before we can say we’ve succeeded in Australia.” The cooperative’s operations there are “a key focus” and he says he “needs to do some work about our future there.
All options are on the table.”
The strategy review will look at how and where Ravensdown’s capital is employed, and what returns those businesses and assets generate. “The main one I’m talking about is Australia. There has to be an improvement there, there’s no denying it.”
With the ever growing focus on environmental issues here, Campbell says helping members gain or retain a licence to farm will be crucial.
As yet there are no plans to follow Ballance down the animal nutrition path, though it’s an area Ravensdown is “keeping a close eye on”, and the firm does have a toehold in that market in the North Island.
“Fertilisers are our core products…. supplying good quality product at the best possible price and at the right time,” he stresses. The cooperative’s research and development spend and expertise reflect that, he adds.
Further mergers and acquisitions will be “looked at on a case by case basis” but nothing immediate is in the pipeline.
Campbell says he aims to be “as accessible as possible” to staff and members and since taking on the role he says he’s been “really encouraged by some of the emails and written correspondence from shareholders. I’ve been hearing from farmers that we need to get back to the basics.”
