Home' Otago Southland Farmer : March 8th 2013 Contents 2
Reporter - Diane Bishop
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Communities Editor - Daryl Holden
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A &P Show coverage
Merger does make sense
It's the end of an era -- but farmers should benefit
CRT has been a big part of
farmers' lives for the past 30
years. But now the rural
retailer will merge with North
Farmlands and all those shops we know
as CRT will be rebranded, a process
which is expected to take up to 36
It makes sense to combine the two as it
will give Farmlands more buying power
and the opportunity to get better deals
which should come back to farmers.
The fact it will be business as usual
means the merger should go smoothly.
The combined business is expected to
deliver benefits of $36 million in the first
three years and $18m a year after that.
Apparently all staff and stores -- 47 in the
North Island and 31 in the South Island --
will be retained and together they will
have combined historic sales of $2 billion
a year. The decision to rename CRT as
Farmlands makes sense. CRT, or
Combined Rural Traders, is a bit like the
old PPCS (now Silver Fern Farms) name.
Unless you are a farmer, or in the rural
scene, it doesn't mean a lot.
But I guess it will take some people a
while to get used to the new name as CRT
has been around for the past three
decades and it rolls off the tongue easier
than Farmlands. But farmers adapt well
to change and I believe this merger will
go as smoothly as when Greenfields and
Landbase merged with CRT 10 years ago.
End of an era for CRT, page 4.
Farm earnings to fall as lamb prices drop
Tough times: Sheep and beef farm profit before tax is expected to fall
to an average $73,000 this season, despite more lambs being born.
Photo: THE PRESS
By DIANE BISHOP
Sheep and beef farm profits
are set to nosedive this season,
as the full impact of lamb
prices and the drought kick in.
Farm profit before tax for the
2012-13 season will fall 54 per
cent on last season, to an
average of $73,000 across New
Zealand, according to Beef +
Lamb New Zealand's econ-
omic service mid-season
This is largely due to sharply
lower lamb prices and a
consequent 27 per cent
decrease in sheep revenue.
Beef + Lamb New Zealand
economic service executive
Rob Davison said although
lamb numbers were up,
thanks to a 123 per cent lambing last
spring and more hoggets producing
lambs. But this was not sufficient to
offset the lower lamb price and impact of
The forecast average lamb price of $85
per head is down 25 per cent from last
season's $113.60, which was the second
highest on record. Beef + Lamb New
Zealand southern South Island economic
service manager Jenny McGimpsey said
the fall in farm profit was disappointing,
but not unexpected.
''But to some extent we are faring better
than those who have been hit by the
drought further north,'' she said.
This season's result had come
off the back of two ''very good''
years for sheep and beef
farmers, she said.
Lambs had grown well this
season and up until mid-
February had been yielding
well, Mrs McGimpsey said.
Mr Davison said maintaining
prices for lamb would be
''Europe's debt crisis is far
from being solved and there is
almost no growth in the
region. Meanwhile, there are
concerns about economic pro-
spects for the US, given its
''And China's economic
growth has slowed to the
lowest rate in a decade,
although it is still at about 8
Cattle returns are predicted to drop 8.8
per cent, but Mr Davison said the outlook
is relatively positive, thanks to the
supply situation in the United States.
Three years of drought has reduced the
country's total cattle numbers to 89.3
million, the lowest tally since 1952.
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