Elders’ chief sees economic unions

Press, 2 June 1989, Page 16

Elders’ chief sees economic unions

By the year 2000, groups of countries and in particular New Zealand and Australia, will be looking at economic unions and trading as single entities, says a spokesman for the Elders group of companies. Mr Charles Garrard, managing director of Elders Pastoral New Zealand, told the annual conference of North Canterbury Federated Farmers that the status quo in world trade was no longer an option.

The Closer Economic Relations agreement must be speeded up and both partners had to broaden their horizons to tackle the European Community and North America.

Although there would always be a place for the small owner-operator, the agriculture industry had to ensure it did not miss out on any opportunities.

Mr Garrard said he was loath to claim that big was best — “it isn’t as of right” — and emphasised that the industry needed a range of viable options.

There was a tendency to knock large companies but the whole industry

must be careful that it was not the ultimate loser. Mr Garrard said there were many positive aspects in New Zealand farming, although the industry had been brought to its knees. The agriculture sector had the land, the skills and the will to ensure that it continued to play a leading role in New Zealand’s development. Elders’ move into New Zealand five years ago was planned as a natural extension of the company in Australia where it was

the largest and most successful farm service organisation, said Mr Garrard.

The intention was to build a market share in New Zealand and provide a strong alternative to the other stock and station agencies.

“We knew we were in for the long haul, that New Zealand was an integral part of our operation, and that it would not be easy.” In hindsight, the timing and entry into New Zealand was poor. However, many parts of the industry had been caught unaware by changing trends — stock and station earnings had been falling, and traditional agents were being by-passed. The changes had resulted in lean structures and a determination in the industry to rebuild and take responsibility for the future. Elders Pastoral believed that competition was not only healthy and necessary to measure performance, but it also provided the impetus to challenge the status quo and seek new opportunities.