KEY POINTS:
Craig Norgate
Deputy chairman
PGG Wrightson
* * *
How would you describe 2006 for PGG Wrightson?
Groundbreaking ... there's 140 years of history in the two companies. In some ways that was all put behind them to create a new beginning. The year for us has
really been about, "Hey, this merger worked".
What was PGG Wrightson's greatest achievement?
It was a pretty large and complex sort of merger. Two-thirds of them fail but this one did deliver the benefits [and] hardly missed a beat with customers.
And greatest disappointment?
How tough it's been for farmers. The economy as a whole really just doesn't know what's going on out there in rural New Zealand.
What do you think this year will bring for PGG Wrightson?
The company's in pretty good heart. The real issue is that high dollar. I think [it] is actually going to force a number of farmers to sell. So we've got a sector that is in some difficulty. For us it probably will mean that clients will increasingly recognise the value we can bring to relationships.
What will be the major challenges?
It really is about supporting clients through these difficult times and, most particularly, I think helping them to look forward and invest for improved profitability. Because often they just stop spending and some of them get themselves into a downward spiral, where in reality there's still a fair bit of improvement that can come by some pretty sensible investment.
What do you expect of the economy? How will that affect PGG Wrightson?
The general economy, I think, is continuing to defy gravity. I actually think the fundamental nature of the economy has changed. We're very consumption-driven. I think what people don't understand is things like $1.4 billion going into [the] Working for Families package doesn't just put that much money into the economy. It actually makes those people far more inclined to spend and to borrow. And that's just fuelling the consumption-driven nature of the economy now and I think we've got a disconnect from the productive sector. So what that says is high interest rates, and potentially even higher, [and] an even higher dollar - but most people are not even feeling the effects of that at all whereas some people feel it dramatically. If anything, people are a little more optimistic today than they were three and six months ago. So I don't see any pessimism out there.
What was the most interesting business story of 2006?
For me it was the failure of the [WTO trade liberalisation] round. It's the one that should be the most interesting but again we've got a country that's increasingly divorcing itself from the real world.
Who was your mentor? What did they teach you?
I've had a number. I guess John Young, my chairman at Kiwi [Co-operative Dairies], had the most impact on me. I guess he [showed me] wisdom more than anything. He taught me how to both recognise and appreciate it.
Where are you going for the holidays?
Matarangi Beach, Coromandel.
What will you be reading?
Salt - the world history; Ireland Awakening.