Tuesday, April 30, 2024

Move will boost joint ventures

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Moving PGG Wrightson’s seeds and grain staff to a new building on the AgResearch site at Lincoln will boost their joint-venture businesses, general manager John McKenzie says.
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It will also benefit the work the group does with Lincoln University, Plant and Food Research and Crop and Food as part of the innovation hub development.

Seeds and grain is just starting to build the offices and will move about 90 administration, office, sales and supply chain staff there from the base in Christchurch when the block is completed in the middle of next year.

The group’s research work, involving about 40 scientists and researchers, is done at the Kimihia farm at Lincoln.

Collaboration is a major part of the science work the groups are doing and the main gains will probably come from the informal, rubbing-shoulders contact between the groups at Lincoln, as much as in the formal programmes, McKenzie said.

Being based at Lincoln will expose the business to Lincoln University students and provide more opportunity for post-graduate students to work with the company. 

AgResearch chief executive Tom Richardson said the PGW seeds move further advances the innovation precinct concept adopted by AgResearch to bring about more seamless collaboration between students, academics, researchers and businesses.

AgResearch is an investor with PGW seeds in the Grasslands Innovation (with 30% and 70% respective shareholdings). Plant and Food Research owns 49% of Forage Innovations with PGW seeds owning 51%. PGW seeds and AgResearch are also partners in the Endophyte Innovation business.

PGW seeds is the subject of a sale agreement to DLF Seeds and McKenzie said DLF will have seen the Lincoln office development plan and objectives when it was negotiating the purchase.

“They see us as a very good business, complementary to their presence in the northern hemisphere.

“There’s not much overlap between us and this would round things off nicely with a lot of pluses to make the research and development stronger.”

Some of the PGW seeds and Crown agency collaboration goes back 30 or so years and getting those Crown partner approvals for the joint-venture change of control is one of the conditions for the sale of the business to DLF.

McKenzie said he expects to continue in the seeds business if and when it is sold to DLF. 

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