DEMAND for fertiliser has dropped in response to higher prices globally. Photo supplied
FERTILISER and farming services company Ravensdown is planning “changes” to its organisational structure and has hinted at redundancies.
The company, which operates plants in Dunedin, Napier and Christchurch, had been through a challenging 18 months, chief executive Garry Diack said.
“The last 18 months for food and fibre production in New Zealand have been challenging.
Weather disruption across the country and increasing costs – fuel, interest rates, and volatile fertiliser prices – means farmers and growers across New Zealand were buying significantly less fertiliser.
“Our projected sales volumes for this financial year are looking to be significantly down on the previous financial year, and it is unlikely that fertiliser demand will return to traditional levels in the immediate term.”
Considering these challenges, Ravensdown had reviewed its business model to realign it with reduced demand, though it also wanted to ensure continued investment in capabilities required for future support of its farmers and growers.
“As a result, we are proposing a number of changes to our organisational structure, and we have begun consulting with potentially impacted employees and their representatives. We anticipate any changes to be determined by the end of May.
Ravensdown had a strong balance sheet, and the review was designed to realign the company’s operating model and capabilities with changes in the industry and market, Garry said.
