Fencepost and RD1 to merge

3.24 pm

Fonterra Co-operative Group Ltd has announced that Fencepost and RD1, two subsidiary companies best known for their websites and rural supply stores, are to merge to form a new company with the working name Rural Supply Company.

The new company will incorporate RD1's 27 AnchorMart stores, Fencepost's 21 Town and Country Stores and both companies' call centres and on-line merchandising services. It will be part of Fonterra Enterprises, whose Managing Director is Alexander Tldte, also Fonterra's Chief Development Officer.

The Managing Director of Rural Supply Company will be Reid Farmers CEO Brian Bilas, who will start on 26 November and report to Mr Tldte.

"We'll be looking to Brian and his team to drive profitable growth and aim for Rural Supply Company to become New Zealand's leading rural merchandising business," Mr Tldte said.

A separate issue for Fonterra is delivering web-based information to shareholders, and on-line tools and services aimed at helping farmers achieve productivity gains. At present, these services are delivered to former Kiwi suppliers through www.fencepost.com and to former Dairy Group suppliers through www.nzdairy.co.nz

Mr Tldte said Mr Bilas and Ray Parker, Fonterra's Shareholder Services General Manager, would work together to develop the most effective and low-cost way to bring these services under one umbrella.

Shareholders will continue to get online information from www.fencepost.com or www.nzdairy.co.nz until new arrangements for web-based information services are put in place.