PGG Wrightson is establishing an office in Beijing, aimed at
delivering revenue and profit generating business for the
company in China.
The announcement was made yesterday by Agria Corp, the
China-based company which is the majority owner of the
agricultural services company.
The initial focus would be on working with PGGW's existing
businesses to satisfy the strong demand in China for high
quality grass seed and for dairy livestock sourced from New
Zealand, Australia and Uruguay.
It was envisaged the office would facilitate sourcing of
products for PGGW's rural supplies business in New Zealand
and serve as a valuable resource for the company's other
It would also be responsible for conducting market and
product research, marketing, brand promotion and
co-ordination of PGGW's activities in China.
The move represented a "significant milestone" in the
company's strategy of generating value from market
opportunities in China, PGGW managing director George Gould
PGGW had a history of working with China-based partners and
customers given the international scope of its livestock,
wool and proprietary seeds business, he said.
In August, PGGW announced a net loss after tax of $30.7
million for the year ended June and, at that time, Mr Gould
said the company was refocusing on "getting the basics right"
and it was awake to the potential opportunities afforded by
growth agricultural economies such as China.
"The establishment of a formal representative office reflects
the success of our relationship, our resource sharing and
continued mutual goal of pursuing attractive growth
opportunities in China, New Zealand and worldwide," Agria
chief executive Xie Tao said.
Mr Gould will visit Beijing as part of a scheduled business
trip to China this week.