FARMWORKS AUSTRALIA BUSINESS PROFILE
46 Hasler Road Osborne Park, WA 6017 Phone: 08 9347 0555 Fax : 08 9347 0552 PLEASE VISIT OUR WEBSITE: www.fwaus.com
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Summary
Background FarmWorks Australia was established in Western Australia in 2001, as a specialist provider of goods and services to the farming sector. Market rationalization such as the Wesfarmers/ IAMA merger in 2001, provided a unique window of opportunity for FarmWorks to actively participate in the restructuring of this sector. The company has invested significant capital over the past five years developing a suite of products and services that will allow it to achieve this goal.
Company Snapshot The establishment of the FarmWorks brand in the in the market place has been a prime focus for the company since its launch. This brand will act as a platform for the delivery of a portfolio of goods and services that will form part of its national offering. These currently include: • • • • FarmWorks Rural Merchandise FarmWorks Livestock FarmWorks Finance FarmWorks Real Estate
With a direct customer base through its branches of over 2500 growers, FarmWorks currently employs sixty five staff nationally. It also has indirect access to a further 3000 clients through its agency network. With state offices in Brisbane and Adelaide, FarmWorks has commenced the process of rolling this portfolio of goods and services out on a national basis.
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BUSINESS SEGMENTS:
FARMWORKS RURAL MERCHANDISING
Background FarmWorks general merchandise provides a full range of fertiliser, agricultural chemical and animal health products to the rural market. These inputs are value added through the provision of independent technical support services. In the case of agronomic advice, FarmWorks Australia has an exclusive service arrangement for its clients through the Synergy Consulting Group.
Profile FarmWorks currently services approximately 2500 retail clients and 100 wholesale clients nationally accessing a further 3000 growers. The retail business is largely based in WA, where FarmWorks is currently the third largest agribusiness product and services provider behind Landmark and Elders. Ongoing group strategy is to progressively expand rural merchandising operations interstate, a process that has already commenced on the following basis: • • • Victoria and southern NSW; (Agencies and Branches) South Australia; (Agencies & Branches) Queensland and Northern New South Wales.
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CONQUEST AGROCHEMICALS PTY LTD.
Background Conquest Agrochemicals Pty Ltd is a one hundred per cent owned subsidiary of FarmWorks Australia. Conquest is actively involved in the importation of technical actives and the toll manufacture of high quality generic crop protection chemicals. FarmWorks is the only rural distribution company in Australia with this in house capacity. The Conquest management group have extensive experience in formulation development, manufacturing processes and supply chain management. The company currently supplies over fifty products to the national broad acre and horticultural markets. The Conquest conduit to market is exclusively through FarmWorks Australia’s network of branches and agents. Quality Control Conquest has formed strategic partnerships with various quality suppliers of technical grade active material. Quality assurance and control of active ingredients from domestic and overseas sources is a key platform in the Conquest quality system. Quality control is managed in house with the assistance of external auditors. Strict adherence to the requirements of the Agriculture and Veterinary Medicines Authority (APVMA) acts as the basis for development of its quality control regimes. Technical Capacity Conquest has an in-house team of technical experts capable of meeting all federal government product registration and regulatory requirements. The business is dedicated to research and development, with its overriding objective being the delivery of differentiation through product innovation. This is achieved by leveraging long term relationships with specialist laboratories, formulators and R&D collaborators..
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FARMWORKS AUSTRALIA LIVESTOCK PTY LTD
Background FarmWorks livestock commenced operations in February 2005. Its current business activities are primarily focused on the West Australian and South Australian market. However plans are already underway to expand operations into the eastern seaboard, commencing in Queensland. Under the direction of General Manager Harold Sealey, (previously Landmark State Livestock Manager) the past two years have seen steady growth. This has occurred on the back of key staff recruitment and the setting up of an agency network with broad geographic spread. The capacity to leverage off the existing FarmWorks branch and agency network is viewed as a key factor in ensuring the ongoing growth of Livestock Services. Farmworks Livestock currently services over 1,500 rural clients
Profile Core activities undertaken by the Livestock team include; • • • • • • Private Treaty Farm to Farm Sales. Sales by Auction Sales to the Live Export Market Sales to Abattoirs Stud Stock Sales Feedlot Supply
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FARMWORKS FINANCIAL SERVICES PTY LTD
Background FarmWorks Financial Services commenced offering financial products to the market in July 2006. FarmWorks team of rural finance managers provide clients with a range of financial products. These include: • • • • • • Short Term loans (specific for livestock, fertilizer etc.) Working Capital and Term Loans Harvest Loans Equipment Finance Housing Loans Investment and Equity Loans
Profile FarmWorks Financial Services despite being a new entrant to the market enjoys a strong client following. This has been driven by its ability to offer extremely competitive pricing in the market. These clients effectively represent the “Mid Market” of current agricultural enterprises and include: • • • • • Broad acre / mixed farming Livestock enterprises Horticulture Cotton Aligned industries supporting agriculture e.g. Merchandise Agents, Aerial Sprayers, Fertilizer Contractors
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FARMWORKS AUSTRALIA REAL ESTATE PTY LTD
Background FarmWorks Real Estate was launched in February 2008. This decision was underpinned by two fundamental drivers. • Firstly there is the self evident profit synergies that exist between FarmWorks Financial Services and Farmworks Real Estate and; Secondly the need to “match” competitors who offer a whole of business service and “bundled” products to clients.
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Initial development of the business has been in Western Australia so as to leverage off current infrastructure. In Eastern Australia this process will occur as part of a “whole” of business roll out including new branches/agents, livestock and financial services.
Profile FarmWorks Real Estate Service aims to be a service provider of choice by delivering superior service, value adding to relationships and offering products aligned to client needs at competitive prices. FarmWorks Real estate income streams are derived from the following core activities: • • • Commission share with agents Referral income-Financial services Settlement fee income (Longer term)
The business model places a strong reliance on commissioned agents in strategic locations.