A joint venture to supply fuel to North Island farmers could boost sales by millions of litres a year, says rural services company PGG Wrightson.
General manager of rural supplies Grant Bunting said the joint venture, called Northfuels, had been set up with Christchurch-based Southfuels.
PGG Wrightson was
aiming to double its North Island fuel sales to 40 million litres a year during the next 12-18 months.
"What we now have is a dedicated distribution system for fuel, which extends our range to cover every significant input required by a typical primary producer," Bunting said.
Farmers had previously been able to pay PGG Wrightson for fuel ordered through other companies.
The company also had a distribution agreement with Southfuels for the South Island, where sales were expected to remain at about 40 million litres a year. Nine fuel trucks would service most of the North Island, while Southfuels had three vehicles dedicated to PGG Wrightson in the South Island.
Southfuels managing director Lance King said a typical farm might use between 10,000 and 15,000 litres of fuel a year, while those using diesel-powered irrigation pumps could use up to 50,000 litres.
