General Management Contractor – A&A Welch group of companies March 2014 to December 2014

Tuakau Grain
  • An Icehouse customer.
  • This is a case of an elderly owner without an exit strategy or a succession plan, for an asset rich, cash poor company with a good business plan and good potential but limited ability to apply it.
  • Historically the business had been struggling do the same thing that they have always done during a changing market.
  • www.businessexit.co.nz recommended that they get a GM to implement the plan which is where I got involved.
  • An interesting culture upon arrival where the customer should be happy with what they get and when they get it.
  • At the age of 73 after a heart operation, the owner has discovered a new lease on life (which is great) and that the cost of having a GM, in this dairy pay-out climate, outweighs the benefit (which is OK).  
  • Brought in initially on a long term basis to facilitate a start-up, increase customer base, diversify product offering, increase productivity and profitability with a storage and drying company A&A Welch Ltd t/a Tuakau Grain, a food company Corn Products Limited and a dairy feed company Milkwel Dairy Feeds Limited.
  • In a climate where farmer’s incomes have halved and the dairy industry is in turmoil, in 6 months I have
  • Successfully launched a calf meal brand into the calf rearing market which services the dairy, cattle, and goat industries.  
  • This created a double margin income stream and gave access to a whole new group of customers.
  • Increased their direct to farm customer base by 130%.
  • Implemented a health and safety policy across the group.
  • With good luck rather than foresight, by diversifying the offering of Milkwel into the calf meal and toll manufacturing business, it somewhat insulated the company from the dairy pay-out woes the dairy industry suffers from at present.
  • Brought on a toll manufacturing customer which increased bagged production by 105% and again diluted the negative influence of the diminished dairy pay-out.
  • Increased revenues by 18% in 6 months.
  • Increased gross margin by 5.2%
  • Become the nutritional advisor to the business and have since given talks about dairy feeds and minerals to Dairy NZ Farm discussion groups.