WRIGHTSON TO COMPENSATE FOR SEED LOSSES
Wrightson Chief Executive Allan Freeth today confirmed the company will compensate farmers who have been affected by the
swede/rape seed mix-up and he outlined key parts of the compensation package.
Dr Freeth made the announcement accompanied by Wrightson Chairman John Palmer as they visited farms in Southland that
have experienced some level of rape in swede crops.
In mid-February Wrightson discovered that a line of the company's Major Plus Swede seed had been inadvertently sold
containing Maxima Plus Rape seed. Around 900 farmers throughout the lower South Island had been affected to varying
"Wrightson has been up-front about the seed mix-up from the beginning and we have been determined to openly and honestly
work with farmers to help fix the problem. Our decision to compensate those affected is fair and correct."
Dr Freeth said Wrightson believed it appropriate to compensate farmers for the loss of crop yield, as a result of the
rape component, and for fair and reasonable costs directly incurred by farmers from having to manage the effect of the
"Since the seed mix-up was discovered, Wrightson has been providing on-farm consultancy services to assess the effect of
the rape on each farmer's crop and to provide advice on how best to manage it."
Dr Freeth said detailed compensation discussions with farmers would begin shortly and the company would be in contact by
late June with each farmer affected on the procedure for compensation - including filing claims forms, as appropriate.
"Wrightson acknowledges the need to settle claims with farmers as quickly as possible and we are moving as quickly as we
can. The company expects to be able to pay out on a range of compensation claims from July."
Dr Freeth commented that each farmers situation was different and this had made developing a system to measure the
economic loss experienced complex. However Wrightson was fully insured for this event and had been working with its
insurer on finalising the detail of the claims process.
Information had been sent to all farmer's affected telling them directly about the announcement and they could get
further information through the Crop Management Hotline - 0800-66-55-25.
"Wrightson has a long tradition of working with and supporting farmers. With the compensation decision we have made and
with our commitment to continuing to work to fix this problem, we are honouring this tradition."