Co-operative calls for a fair deal on animal health products

MEDIA RELEASE 18th April 2012

Co-operative calls for a fair deal on animal health products

Ravensdown is calling for a fairer deal for farmers on animal health products and is determined to disrupt the drench, dips and mineral market with its aggressive pricing. The strategy according to Ravensdown CEO Rodney Green is to deliver proven quality without gimmicky giveaways and at a price that only a direct-to-farm co-operative can deliver.

Ravensdown entered the animal health sector thirteen years ago and is currently standing at number three in the drench market.

“In that time we’ve worked hard on trialling formulations, quality testing and developing new products. Now the range is broad and proven, it is time to leverage our direct distribution efficiencies,” said Rodney Green Chief Executive Officer at Ravensdown. “Because we own the intellectual property and do not sell through retailers, we can pass on savings to farmers. Of course, our shareholders are the first to benefit, but we hope all farmers will get a fairer deal when the keen edge of competition slices through the animal health sector,” added Rodney.

“Now we have a broad enough range of animal health products, we have achieved our aim of becoming a one stop shop without the costs of running the shop. As a 100% farmer-owned co-operative, we exist to challenge those who might seek to exploit long-term price premiums on key farm inputs. It’s been in our DNA since being formed by farmers who wanted a fair deal on their fertiliser. Animal health products are also a key input and we want to keep prices competitive in the same way we do for fertiliser,” concluded Rodney.

“The large corporate animal health players are often offshoots of large overseas pharmaceuticals companies. Farmers have no appetite to pay for margins which are siphoned off to overseas shareholders’ dividends or frittered away on gimmicky promotions. By contrast, Ravensdown keeps things simple, makes only enough to ensure ongoing success and returns all profit to the co-op’s shareholders.”

Ravensdown veterinarian, Gavin Goble added, “As farmers are in the midst of the autumn dry-off, very competitive prices on our pour-on abamectin will be welcome. Having proved itself over the last seven years, it’s an established product which can be bought at a totally new price point. Despite prices like that, Ravensdown’s Animal Health business unit remains profitable and, as always, stands on its own feet without help from other product lines such as fertiliser.”

ENDS

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