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CRT Buys Winton Feed-Making Arm

Published on 1 September, 2008, Last updated at 06:00 GMT

SOUTH ISLAND farmer owned co-operative CRT has bought the manufacturing arm of Winton Stock Feed to fast-track its manufacturing strategy in the South Island.

The multi million-dollar deal takes effect on September 1.

There are no planned changes to the products, which will eventually be rebranded under CRT Feed's Reliance and McMillans Equine brands.

Staffing levels would remain the same.

Chief executive Brent Esler said CRT would be able to use its existing southern South Island FarmCentres and technical field officer network to increase sales volumes and further expand the operating capacity of the plant.

The acquisition, coupled with the new CRT Feed mill in Rolleston, would fast-track the development of CRT Feed's manufacturing strategy in the South Island and its aim to provide continuity of supply of a range of stockfoods to shareholders across the South Island, he said.

"Vertically integrating the feed supply chain by purchasing grain from CRT's arable farming shareholders, adding value to it through the manufacturing process and then selling the finished products to CRT's pastoral shareholder base has many benefits for CRT and its share-holders.

"Not the least of these is the ability for profits made throughout the supply chain to be redistributed to the farmers that generated them." Winton Stock Feed's molasses and imported dairy meal business is unaffected by the sale, and the Winton Stock Feed brand is retained by director Nelson Lindsay, who bought the business in 1988.

Winton Stock Feed will share the site to provide continuity for its bulk molasses and bulk dairy meal importing and distribution business.

The co-siting will allow CRT Feed and Winton Stock Feed to further develop their strategic partnership and ensure that together they can service the rapidly growing stockfeed market with a full range of options from straight palm kernel extract to high- performance dairy and calf pellets, Mr Lindsay said.

"This sale gives Winton Stock Feed the opportunity to focus on growing our nationwide molasses and bulk imported dairy meal distribution business.

"We will also have access to CRT's South Island-wide sales force to further grow our share of the rapidly growing molasses and bulk dairy market," Mr Lindsay said.

CRT chairman Don McFarlane said that the purchase of Winton Stock Feed's manufacturing arm had fitted very well with the CRT board's strategy of ensuring the company continued to grow and remained focused on operating in areas where it had a proven track record of performance. THE MODEL Farmers who have shares in CRT are contracted to supply grain Those growing crops may buy technical advice, and products from CRT.

CRT adds value to the grain crops through the manufacturing process and is sold back to farmers as stock feed.

Profits made throughout the supply chain are redistributed to the farmers that generated them Recent CRT acquisitions wWinton Stock Feed manufactures a large range of stock feed for the dairy, sheep, deer, pig, horse and chicken markets, along with dog nuts and a retail range.

The Winton mill will be CRT's third following of Reliance Stockfoods and McMillan Stockfeeds.

CRT has also announced acquisitions of N H McCrostie Real Estate, Linton Grain & Seed, and horticulture servicer CropWatch


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