RURAL services provider FarmWorks has announced it will focus its firepower on agricultural chemicals and rural merchandise at its AGM in Sydney today.
This follows the news two weeks ago that FarmWorks made a placement of shares to Mr Qunhui Xu, the managing director of Zhejiang XinNong Chemical Co, a leading agricultural chemical manufacturer. Mr Xu has a 13% stake in the company.
FarmWorks said at today’s meeting that a rising global population, declining arable land and the soft commodities boom were the key drivers for growth in both the agricultural chemicals and rural merchandise sectors.
FarmWorks’ core business has been forged in agricultural chemicals, through its Conquest Crop Protection product range and rural merchandise, where it has built a sustainable competitive advantage since inception in 2001.
The company will be divesting its livestock division and its rural property division where discussions have already commenced with internal and external parties.
Chief executive Rick Moody said: “The market conditions are right for FarmWorks to focus on the profit drivers of the business, underpinned by the strengthening soft commodities market. Rural merchandise and services is our core business and the sector in which we believe we can best improve market penetration and drive profit margins.”
“Our strategic focus is clear and we are committed to delivering strong, sustainable bottom line results for our shareholders.”