Fletcher stops importing fertilizer

Waimarino Bulletin, Volume 6, Issue 261, 1 November 1988, Page 9

Fletcher stops importing fertilizer

Fletcher Challenge will continue as a retailer of fertiliser to farmers but will pull out of the direct importing of reactive rock phosphate, according to Fletcher Challenge Rural Sector General Manager Richard Bettie. This business traded under the names of Challenge Fertiliser Limited, Northern Phosphate Limited and Duraphos International Limited. "The business has suffered considerable losses and we see no prospect of a profitable operation," says M r Bettie. "This is a capital intensive low margin business which is dominated by Co-oper-atives whose return on investment can be passed on to members in the form of reduced fertiliser prices". Negotiations have been completed with Mr Kerry Hoggard, Deputy Chairman o f the New Zealand Phosphate Company Limited and Chief Executive of FERNZ Corporation for the sale of shares to the New Zealand Phosphate Company Ltd. An advertising campaign for Duraphos operating under the slogan "The Duraphos Deal" has been cancelled. All existing supply contracts will be honored, says M r Bettie. "We came into this business to develop a market for reactive phosphate rock and while our market share has not been as great as we had hoped w e have taken a responsible attitude and only sold the product to farmers whose soil

type has been diagnosed as suitable," said Mr Bettie. "We believe today there is more confusion as to which is the most cost effective fertiliser to apply, than at any time in the past and

that the right fertiliser for the right farmer is a major cost/benefit variable." "We have therefore taken the decision to absorb the technical and selling expertise previously available to

Challenge Fertiliser into Wrightson to develop a retail skill base, capable of diagnosing the most cost efficient form of nutrient available to the soil of the modern farmer today."