Fifty Fantham’s Legacy 2008

CHAPTER FIFTY

Fantham’s Legacy

Popular former general manager Paul Macfie now returned to the company after a five-year absence. He had resigned in 2003 to take on the role of chief executive officer of Hawke’s Bay based Williams and Kettle, where he steered the company through the PGG Wrightson takeover, then accepted a position with investment bank McDouall Stuart. Having spent most of his life in senior positions in the stock and station and associated industries, his decision to take on the role of group chief executive officer for Allied Farmers fulfilled his ambition to get back into a farming-related enterprise where he could apply his extensive knowledge and management skills. His decision to live in New Plymouth would provide easy access to the steadily expanding territories now displaying the Allied Farmers banner. On his return to Taranaki he said: New Plymouth is more central. I always thought New Plymouth was one of the best kept secrets. The council was doing a superb job with the facilities. The walkway just blew me away. Former colleagues were delighted to have him back: He’s a mover and a shaker. …We are absolutely delighted to have him on board. He has the x factor in relation to staff.

A difficult but stimulating task lies ahead for the new group chief executive officer who arrived on the job to news from New Zealand’s dairy giant Fonterra that the continuing decline of commodity prices, coupled with the state of the dollar, would worsen the effect of the global financial crisis and would signal the end of the dairy boom and reduce dairy farmers’ spending power for the foreseeable future.

Paul Macfie immediately visited all the company outlets and staff throughout the country, reacquainting and familiarising himself with the overall operation. Allied Farmers now had 14 rural supply merchandise stores – 11 in Taranaki and three in the King Country, trading as Taranaki Farmers and King Country Farmers respectively. It also had well established livestock operations in Taranaki, Waikato, King Country, Manawatu and a burgeoning recent addition at Ashburton in the South Island. It was a very different scene to the previous 2007/08 year when, fuelled by a buoyant dairy sector, with unprecedented prices for dairy cows, the livestock operation enjoyed its largest annual revenue in the company’s history and the Paul A. Macfie BAgriCom., general manager

1998–2003 – Group chief executive officer 2008 (incumbent) of Allied Farmers Limited.

merchandise its best performance for a number of years, continuing with six months profit for the 2008/09 year. Despite intense competition, the real estate division also made a modest profit. Amongst the continuing failure of finance companies, Allied Nationwide Finance returned a pretax profit of $3.9 million, which in such volatile and uncertain times was an excellent result.

The position of group chief executive officer includes a hands-on role in the livestock operation, and Paul Macfie’s wide experience and connections in the industry offers much for the future of the group. His first priority was to get to grips with the rapidly growing finance business and to re-establish himself with key people in the company, most of whom he had worked with in his previous tenure as chief executive. Allied Farmers’ recent strategic decision to relocate many of the corporate roles to Wellington had not found favour with all staff, particularly the rural people, and Paul felt it was important for the ongoing health of this integral business that crucial relationships were strengthened. With a keen and discerning eye on long term aspirations and strategies for the future of the organisation, he said: While Allied Farmers was founded in Taranaki, there is no doubt that in recent times the company has grown significantly beyond this historical base. Recent development has been very much in keeping with the traditions of the past, that is, acquisition and organic growth of livestock, merchandise and real estate, but the growth of our finance business has significantly changed the dynamics of this ‘traditional’ business. Recent mergers of other New Zealand rural servicing businesses, plus the entry of two major corporate players from Australia, have changed the landscape of rural New Zealand. This has opened up opportunities for Allied Farmers that were probably beyond our capabilities in the past. The establishment of the business into the South Island is an example of expansion that would most likely not have succeeded prior to the restructuring of the industry that has taken place over the past three to four years. Farmers like choices and providing we ensure we offer something of value there will always be opportunities to expand the traditional offering that has served us so well over the past 100 years. The credibility of the Allied Farmers brand has grown as a result of the recent changes to the industry, and Allied’s own growth, and this has assisted in significant business now being generated outside of the Taranaki base. I see our traditional business continuing to expand nationally over the next few years, backed up by finance packages offered by what is now a significant finance business. That expansion won’t, however, be limited to Allied Farmers doing this on its own, indeed we have several key partnerships that complement our business in many ways and strategic alliances are likely to play a significant role in the ongoing growth of Allied Farmers. The establishment of MyLiveStock, probably one of the most respected rural internet sites, will open up opportunities in a growing online trading business and this will also assist in the ongoing development of the company.

Evolution and reorganisation in the management structure continued in December 2008 with the return of Shawn Gibbon to the position of group real estate manager, reporting directly to the group chief executive officer. Shawn had also previously worked for Allied Farmers for nine years until he in resigned in 2006 to take up a position of real estate manager with PGG Wrightson. His new Allied Farmers First National appointment included consolidating the Taranaki real estate and property management branches situated at New Plymouth, Stratford, Hawera and Urenui and implementing a real estate growth strategy in other regions where Allied Farmers has a presence. A Taranaki man and horticulturalist by trade, Shawn and his family owned and operated four ‘Taranaki Fresh’ stores at Stratford, Waitara, Inglewood and New Plymouth. Major plans were now under way to rebuild Allied Farmers First National real estate division throughout the province and take advantage of its enduring historical connections within the countryside and towns of Taranaki. The division had made a significant contribution

throughout the past 100 years, with many well known identities having worked in it. The earliest known employee was Mr H. E. Candy, of Manaia, who held the position of ‘land agent’ for Farmers’ Co-op and its predecessor Gillies and Nalder in the early 1900s.

A century of real estate sales was suitably celebrated in 2008 when Allied Farmers First National Real Estate ‘scooped the pool’ at First National’s conference in 2008, winning three of the network’s major national awards. Of almost 100 First National Real Estate offices, Allied Farmers First National Real Estate Stratford won ‘Top Office’ of the Year and Allied Farmers’ Owen Mills with a 30-year service record, won ‘Top Sales Consultant’ of First National’s 700 salespeople and ‘Top Rural Sales Consultant’. Long-time sales consultant Kevin Walsh received the award of third top rural sales consultant and twelfth overall. First National Real Estate general manager John Stewart said the company’s involvement in Taranaki’s rural communities over many years had seen them become the preferred conveyors of farm and lifestyle sales in the region and commented on Owen Mill’s achievements by saying: Dedicated to understanding the aspirations of both vendors and purchasers, Owen’s knowledge of the market, each property and its recent performance along with potential into the future has seen him consistently ensure satisfaction for both parties in his sales. With a staff comprising 33 salespeople, two property managers and six administration personnel working from the three offices in the province, the team’s success reflected the Allied Farmers’ and First National Real Estate’s partnership’s desire to continue to focus on delivering a comprehensive and quality real estate service to the communities in which it operates.

The departure of William Giesbers after two years with the company as group chief financial officer was announced by the group chief executive officer and the appointment of Hayden Monk as acting group chief financial officer from 1 February 2009. Hayden joined the company in 2007 as financial controller Rural Services. He had previously been employed by Telecom and based in Wellington. Despite a number of recent staff movements the company was still endowed with a super-abundance of long-serving employees, many whose service spanned 10, 20, 30 and occasionally over 40 years. These loyal stalwarts of Allied Farmers have survived extraordinary changes in their working environment and the world around them. Gone are the days when calculations were completed by mental arithmetic and ledger entries scribed in longhand. They have witnessed the introduction of computers, calculators, electronic accounting devices, television, mobile phones, huge changes in transportation and a transformation in social and commercial behaviour, mostly brought about by the relentless evolution and march of information technology onto the farm, into the company and at home. At no time in the history of mankind has there been such massive social, industrial and economic change as in the past 20 years. We pay homage to the hundreds of staff throughout the history of Allied Farmers who could be considered long-service employees by profiling four incumbent personnel who have achieved noteworthy status.

Brian Edlin came to the company in 1966 and commenced what turned out to be his life’s work with Taranaki Farmers (Wholesale) at New Plymouth, and has remained in the purchasing division of the merchandise department of Allied Farmers throughout his entire career. Now purchasing and operations manager of the merchandise division for the whole company, he recalls the most difficult days of his working life when the company decided to close down the wholesale warehouse at New Plymouth, making many of his workmates redundant, with only two surviving, including Brian. He said ‘the changes’ throughout the years have been the most memorable part of the job, with many staff finding it difficult to accept change. He spoke about the day when he threw his ready reckoner book away and received a calculator. It happened that a staff member who worked with Brian died, and instead of replacing him, the company purchased Brian a calculator!

Sixteen-year-old Geoff Gray left school and commenced employment at the Farmers’ Co-op

Regent Street office as office junior in 1964. He was employed by long-time accountant Les Church. In 1970 he left on his OE to England and returned to the company in 1974 at the invitation of Norm Blake, the company secretary. Although broken by his working holiday in England, his term of service started 45 years ago and he has known no other employer in New Zealand. He has held the position of chief clerk and is now assistant accountant for the company. Yet another 1964 addition to the staff was Bruce Hicks, born and bred in Hawera, who at the age of 15 years arrived at Farmers’ Co-op straight out of school and was employed as a salesman for £4 per week. He continues to work in the merchandise store at Hawera as a retail salesperson where he started 45 years ago under the guidance of Charlie Chisholm, his first manager. Apart from a short time at New Plymouth, Manaia and Stratford branches, he has spent his entire working life with the company at Hawera. Bruce considers his worst moment with the company was immediately prior to 1987 when many jobs were on the line, and the best moment was seeing it survive when a new board took control in 1987. Bruce recalls former general manager Barry Whelan as a man who had the confidence of staff and a lasting influence on him. Bruce and his wife Carol work in the Hawera Taranaki Farmers Mitre 10 Hayden J. Monk BBSAcct. CA. store on Glover Road. Group chief financial officer of Allied Charlie Downs was Allied Farmers’ longest-serving employee at the time Farmers Ltd. this book went to press. He is one of the evergreens of Allied Farmers, having serviced the back country east of Stratford for the past 49 years as a livestock agent with pride and commitment. He has known no other job. At the age of 16 his father said to him, ‘I have arranged for you to start at the Farmers’ Co-op on Monday’. He turned up for work at the Stratford branch and has remained with the stock division ever since. He acknowledges the district manager and fat-stock drafter for the Patea Works, Peter Western,

Board of directors 2008, Allied Farmers Limited. From left: Messrs Garry C. Bluett BMS, CA., G. Andrew McDouall BCA, DipNZX, Ross J. C. Dunlop DipMgmt, John J. Loughlin – Chairman MBA, BCA, FCSAP, ACIS, FAII, FNZIM, Peter L. Cook – Deputy Chairman, DipAg., Philip C. Luscombe BAgSci(Hons).

as the most influential person in his working life. Much has changed in the transportation and communication departments and Charlie recalls the days when 4,000 to 5,000 sheep were yarded at Kohuratahi. Although he has witnessed many changes, he believes the stock agent’s basic work is pretty much the same as it has always been. There have been few highs or lows throughout his long and rewarding years at the company but Charlie believes his greatest achievement in life has been providing ‘stability for his family’. Never-ending phone calls, often late into the night and early in the morning, are Charlie’s measure of success: The phone has got to keep ringing. If it stops you are not doing your job. For Charlie no day of the week is a rest day; being available to his clients seven days a week and speaking with fellow agents and clients until around 10:00pm each evening has always been regarded as ‘just part of the job’ which he has diligently carried out throughout a remarkable five decades.

Peter L. Cook, one of Allied Farmers longest-serving directors in the modern era, resigned on 20 April 2009 due to ill health. His contribution to the company has been considerable, particularly during the precarious late 1980s and early 1990s. Apart from his position on the board, he also held the office of deputy chairman for the past nine years. Chairman John Loughlin spoke of his exceptional loyalty and service: Peter has been a director of Allied Farmers since March 1987, a crucial time in the history of the company as it fought for its very survival when entering into a Scheme of Arrangement with creditors. His input during that time, and subsequently as it grew geographically into other areas outside of the home base of Taranaki, has been substantial. Peter has been a strong advocate of the rural servicing business and has always been a loyal farming client of the company. His input will be missed by both directors and staff and we wish him well for a quick recovery.

The staff and shareholders and indeed the community of Taranaki are and always have been integral to this extraordinary story of a stock and station business that continues to serve the people and place where it was founded and now embraces the wider rural community of New Zealand. This ever-resilient organisation can, with immense pride and satisfaction, stand tall amongst the few remaining New Zealand stock and station organisations whose origins date back over 100 years. It is the only vintage rural trader in the Dominion still proudly and inextricably linked to the people and place where it was founded. Welded together by a parochial inner sanctum of committed shareholders, staff and clientele, it continues to uphold the ideals and expectations of early pioneers who laid the company’s co-operative foundations. Allied Farmers has enjoyed the calm years and has survived great upheaval and challenges dealt out during a colourful 120-year history, including slumps, recessions, depressions, two world wars, economic failure, mechanical and technological revolution, amalgamation, and the many vicissitudes of continuing change. This company has survived because of men and women of exceptional vision, integrity, courage and effort created and developed a stock and station enterprise that is still looking to the future with great expectation. The shareholders, the directorate and thousands of staff who have played a part, can rightfully be proud of their contribution to the legacy of Arthur A. Fantham and the Egmont Farmers’ Union Ltd. This remarkable company, Allied Farmers Limited, has earned its place as one of New Zealand’s most enduring agricultural commercial enterprises.