PGG partners w Deosan, Biologics to enter NZ dairy

News release

PGG Wrightson partners with Deosan and Biologics to enter New Zealand dairy sector

Auckland [18 February 2008] – PGG Wrightson, New Zealand’s largest farm supplier, has formed a strategic partnership with leading locally-owned dairy industry suppliers Deosan and Biologics to enter the booming dairying sector.

Deosan makes environmentally-friendly dairy hygiene products, ”Supernova” organic detergents for milking sheds, “Teat-Ex” teat-spray to prevent mastitis and bloat control products. Biologics supplies animal health supplements, fertilisers and a farm mineral management service. Deosan and Biologics are both headed and majority-owned by managing director Kip Bodle.

PGG Wrightson national sales and marketing manager Grant Bunting said PGG Wrightson has traditionally been strong in the sheep and beef farm sectors but this partnership with two innovative and highly regarded dairy industry suppliers will strategically position PGG Wrightson in dairying.

“We have a corporate strategy of growth through partnerships and when we looked around the dairy sector Deosan and Biologics stacked up as ideal partners in terms of their strong market position, their people and their leadership in delivering environmentally-friendly products and services that are delivering quantifiable benefits to farmers,” said Mr Bunting.

Mr Bunting said besides the opportunity to service New Zealand’s booming dairy sector, dairy farming is at the core of PGG Wrightson’s global growth plans.

Deosan and Biologics managing director Kip Bodle said PGG Wrightson’s national network of 106 stores including 30 in the dairy heartland areas of Waikato, Bay of Plenty, Taranaki, Southland and Canterbury provided an excellent distribution platform for Deosan and Biologics products and services which were previously sold directly and through veterinarians and smaller-scale rural merchants.

“PGG Wrightson has the infrastructure we need for merchandising with stores close to markets. They employ local people, many with farming experience, to run their branch stores. In addition they have over 100 technical field representatives who will be trained to support Deosan and Biologics products and services.”

Mr Bodle said like PGG Wrightson, Deosan and Biologics are focused on providing dairy farmers with solutions for better herd health and hygiene rather than being product driven. “Our goal is not just to sell the products we have today but to raise the bar with new products and services that improve productivity and are environmentally sound.

“We believe Biologics offers a unique mix of practical and effective animal health solutions. Improved production of milk solids, increases in conception rates and reductions in the cost of maintaining optimum herd health are among the key benefits we are seeing from the use of our products and animal health management programmes.”

As an innovator and manufacturer of dairying hygiene products, Deosan is helping to address the dairy industry’s sustainability and environmental challenges. “As dairying continues to grow, farmers are using more water, energy, and producing more waste than ever before. Our products are developed to minimise energy and water consumption and reduce effluent.

“Overall, our business is committed to product innovation through research and development and to delivering intelligent solutions that meet the present and future needs of New Zealand dairy farmers.”

Mr Bunting said the partnership with Deosan and Biologics was part of a comprehensive service for dairy farmers which is being developed by PGG Wrightson. The service includes:
- Four supplier dairy specialist business development managers and over100 technical field representatives
- 0508 COW SHED – a call centre advisory service for dairy farmers,
- Development of programmes for dairy farmers to optimise their herd health and hygiene management, including tools for monitoring milk quality and reducing energy consumption
- Agronomy support packages focusing on improving feed systems

ends
For a copy of the photo that accompanies this release please visit:
http://mediacom.nzpa.co.nz/attachments/9921_md11414a.JPG
Photo caption:
Grant Bunting (PGG Wrightson National Sales & Marketing Manager) with Deosan and Biologics Managing Director Kip Bodle and Murray Ross (PGG Wrightson Supply Chain Manager - Rural).

ENDS

About PGG Wrightson – www.wrightson.co.nz
PGG Wrightson/Williams & Kettle is New Zealand’s largest – and only nationwide – provider to the agricultural sector. We offer a wide range of products, services and solutions to farmers, growers and processors in New Zealand, and to processors and end-users internationally. Our businesses include livestock, wool, seeds, animal nutrition, farm supplies, finance, real estate, insurance, irrigation and training.

PGG Wrightson draws on the knowledge and expertise of 2,700 staff – and the services of diverse business units, alliances and partnerships – to meet the needs of more than 90,000 clients across New Zealand. We also have growing operations in Australia and South America. Assets and annual turnover each exceed $1 billion dollars.

The company was formed in October 2005 through the merger of Pyne Gould Guinness Limited (established in 1851) and Wrightson Limited (established1841). In the Lower North Island our Livestock, Wool and Rural Supplies businesses trade under the Williams & Kettle name. Our shares are listed on the New Zealand sharemarket under the code PGW.

About Deosan
Deosan New Zealand Limited and Deosan Manufacturing Limited are privately owned and operated New Zealand companies which manufacture and market superior dairy hygiene products. The companies were formed to fulfil an identified opportunity in the dairy hygiene market for an innovative new environmental specialist supplier. Through the 1999 acquisition of formulations and associated intellectual property from Johnson Diversey, Deosan now independently markets and distributes the dairy hygiene range under its own brand throughout Australasia. These formulations are also marketed in Europe by Johnson Diversey and are the recognised market leaders in their field.

Deosan Manufacturing Ltd is the product research, development and manufacturing business. Through smart investment and strong strategic alliances with like-minded innovators, our product formulations and delivery systems are improving dairy hygiene and reducing environmental impact. Deosan NZ Ltd is the strategic, business development and marketing arm of the business. Business activities are centred on developing strong, collaborative sales and distribution channels while building end-user awareness and demand for the Deosan range of dairy hygiene products.

About Biologics
Biologics NZ Ltd is a privately owned and operated New Zealand company, manufacturing and distributing high quality animal health products to the rural sector. These products have been used by New Zealand farmers for more than 15 years to balance macro and trace element mineral deficiencies. The company was formed in 2006 as the result of a product line acquisition from Coast Biologicals Ltd. Biologics has a diverse team of staff from farming, product research, product development and business management backgrounds and is supported by a range of experts in animal health and nutrition.

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