COMMISSION DECISION ENSURES CHOICE AND INNOVATION FOR FARMERS

Agricultural manufacturer Tru-Test today welcomed the Commerce Commission’s decision to block a bid from its main competitor Gallagher to acquire 100% of the company.

Gallagher has had a 14.7% shareholding in Tru-Test since earlier this year. In May they made an application to the Commerce Commission for clearance to purchase up to 100% of the company.

Tru-Test Managing Director Des Scott said Tru-Test had been concerned at the impact such a merger would have had on choice and prices for New Zealand farmers.

“Tru-Test has a 58% share of the New Zealand electric fencing market, while Gallagher has 38%. If the companies merged they would control 96% - which would clearly have a major effect on competition,” he said.

Des Scott said that without Tru-Test’s strong competition in the market, farmers would have faced a monopoly situation leading to higher prices, a lack of product choice and a dramatic cut in research, development and innovation.

Tru-Test owns three of New Zealand’s five main electric fence brands, and is Australasia’s largest supplier of electric fences.

“New Zealand is the acknowledged leader in animal management products, and a merger of this country’s two main suppliers would destroy the competitive process by which innovative products evolve,” said Mr. Scott.

Tru-Test’s competitiveness and innovation are seen in such developments as the multi-million dollar export contract won in Denmark in July this year for the company’s world leading electronic milk meters.

The Danish Herd Recording Authority has agreed to purchase more than 2,000 Tru-Test Electronic Milk Meters - a contract worth close to NZ$5 million. The meters are also being sold in Germany, and trialled in the USA, France, Belgium, and Ireland.

Looking ahead, he said, the company is positioned for growth through its continuing focus on export markets, particularly Europe and the US, and gearing up for the busy domestic season ahead.

Tru-Test is one of the top 10% of New Zealand exporters and is the world’s leading manufacturer of milk meters and electronic weigh scales for animals.

-------------------------------------------------------------------------------------------------

About Tru-Test

Tru-Test is New Zealand’s largest agri-tech Company and the recognised global leader in agri-tech products such as livestock weighing systems and milk meters.

The company has a range of world-leading agri-tech brands including Speedrite, Stafix and PEL (electric fencing), Cyclone, Hayes and PEL (conventional fencing), Tru-Test electronic weigh scales and milk meters, and Supershear wool harvesting and shearing equipment.

Tru-Test is based in Auckland and exports its products to more than 70 countries. It designs, manufactures and markets leading-edge products that monitor and improve livestock productivity. Tru-Test is New Zealand’s largest contract electronics manufacturer.

Tru-Test is recognised internationally for its leading innovation in agricultural products. It has wholly owned subsidiaries in Australia, Mexico and the USA and a joint venture company in Brazil. Tru-Test is an ISO9001 quality registered company.