“We've recognised the need for additional resources for some time, and we're confident we've found the right buyer for the business and our customers in NZX,” said McKenzie.
“NZX has proven to us that they understand data and they have the resources, technology, international connections and passion for the sector that will complement the Agri-Fax business,” said McKenzie.
McKenzie and Meares have agreed to stay on with Agri-Fax for at least three years to transition existing operations and carry out development work. “We are happy that we will soon be freed up from the day to day operations of the business so we can concentrate on the development side. It's something we've been keen to do for a long time and now we can,” said Meares.
Established in 1987, Agri-Fax produces three main data types to media and other rural customers:
- Farm gate pricing;
- Overseas market information; and
- Market monitoring.
Growing demand for more specialised and sophisticated rural data products in recent years pointed McKenzie and Meares toward research and development, but the time spent collecting, customising and disseminating existing data has so far precluded development work.
“We run our own farms as well, so we've been aware that we haven't been able to fill that customer need. NZX has shown us they are willing and have the capability to manage that operational side really well. Together, we will be looking for the right people who have the necessary combination of skills, knowledge and qualities to take over the Agri-Fax operations long term. We both want to ensure that our suppliers and customers will continue to receive t he same quality, trusted, confidential and independent service they have been receiving from Agri-Fax for close to 20 years,” said McKenzie.
NZX CEO Mark Weldon was keen on the rural investment from the start. “One of NZX's core values is Advancing New Zealand. We recognise how critical the rural sector is to this country. The Agri-Fax business is a key way for us to contribute to Advancing New Zealand,” said Weldon.
“We've spent the past couple of years learning as much as we can about the rural sector, what drives it and what its data needs are and may be in the future. We're all excited about being part of it in a more tangible way,” said Weldon.
Agri-Fax will continue to be based in North Canterbury.
