Stock agents ‘endangered’

Press, 26 December 1986, Page 15

Stock agents ‘endangered’

Traditional stock and grain agents cost $60,000 a year and are an endangered species, according to former Lincoln College principal, Sir James Stewart.

They are likely to be replaced by more highly qualified and versatile company representatives with good marketing skills, supported by a few specialist staff, he told the second annual Agribusiness Workshop in Wellington.

Sir James is a director of Pyne, Gould, Guinness Ltd.

“Farmers who have come to expect from their stock agent everything from sales advice to a hand with the tailing will not have these services in such abundance.” Sir James said the countryside will be “more denuded” of agents following the latest big stock firm merger. “It is possible the remaining companies would like to go a bit further if the others would make the first move.”

He also questioned whether the traditional stock sale will survive. “It is cumbersome. Its main social benefit, I

often think as I drive past Addington Sale day, is to provide employment for large numbers of drivers, yard men, agents, clerks, caterers and road repairmen.”

Like wool, fat stock may soon be sold electronically by objective measurement since experiments are already in progress.

However, farmers will probably want to continue inspecting store animals and replacement breeding stock before purchase for some time yet, delaying their sale by electronic means.

Sir James questioned whether the role of wool brokers — a cornerstone of a stock firm’s business — will survive in its traditional form.

“Recent vertical integration moves between brokers, scourers and merchants, with the Wool Board also involved, would tend to indicate that it may not,” he said.

Those factors and increasing competition in merchandising from farmer co-operatives and other specialised firms question the continued financing role of the stock and station industry.