WORDS BY ANNETTE SCOTT
Today it is focused on giving rural businesses the opportunity to source better deals and on delivering real value to local communities, helping to support a sustainable future for New Zealand farming. It prides itself on doing its best on prices, finding answers, sharing its experience and knowledge, connecting people with new ideas, and listening and understanding the needs of real people who make a living from agriculture.
And that is exactly what the group of local farmers wanted when they gathered in 1963 and initiated the establishment of the Ashburton Trading Society (ATS), now trading as Ruralco. Their idea was for the Mid Canterbury region to come together to combine their purchasing and lower the cost of running their farming businesses.
Sixty years later, the co-operative continues to grow while upholding the vision of its founding fathers to provide competitive pricing for their businesses and a sustainable future for tomorrow.
A group of shareholders, aptly identified as members of the “two-digit plus one club,” reiterated their forebears forward thinking, that while in 60 years Ruralco has grown with the times, it continues to follow that founding vision.
They were proud as they came together as active account holders of two-digit shareholder accounts, one even a single digit, to reminisce and share memories of their families’ 60 years with the co-operative.
The room was buzzing as the early days were recalled and gratitude was expressed of the privilege, bestowed by boards over the years, that allowed the transferring of founding and early shareholder account numbers on through the generations.
The honour of continuing original early member accounts holds value to families.
“It is good that the Board over the years has allowed these early member numbers to be transferred as they really do hold value through family generations and for the co-operative.”
“We are all proud to carry the numbers on and we pay tribute to the Board for being able to maintain them,” single digit account holder Sandra Curd says.
The double-digit number raises a few eyebrows around the suppliers with some not immediately recognising the low number as an early membership. That’s largely because membership has grown to such an extent that the majority of membership numbers are now into four digits.
Amazingly, there are 50 accounts under 100 still alive and active among the more than 4000 shareholder accounts that have accumulated in the 60-year history of the co-operative.
It all started as the Ashburton Trading Society (ATS) in 1963 but who would have thought that from its humble beginnings at a meeting in the private residence of the then Mid Canterbury Federated Farmers president Jack Brand, that 60 years on it would be governed by a Board of Directors charged with setting strategic directions with a management team running the day-to day-business.
While the scale, governance, management and operations of Ruralco have evolved well beyond any vision of the founding directors, the heart of the early co-operative keeps beating.
The ATS co-operative was formed on August 21 1963 by farmers for farmers with the single focus being to lower input costs through the initial supplier networks.
Predominant industry in the Ashburton County at the time was sheep, beef and arable farming.
Founding members Jack Brand, Gilbert Blair, Phil Curd, Alan Franks, Brian Lill, Eric Pilbrow and George Scarth were spread district-wide but they shared a common desire.
These innovative and ambitious farmers were on a mission. They saw a need for the establishment of an organisation that would have the financial interests of farmers at its heart.
As directors they sold their vision and signed up members and it quickly became clear the cooperative meant business. The impact was evident and by early 1964 ATS had reined in 40 members.
Bill Taylor recalls attending the first public meeting in October 1963 when the first members were formally approved.
“I was representing the Young Farmers committee; there was 50–60 at the meeting. I remember we had to pay 20 pounds for membership, that was quite significant in those days. I got home and talked to Dad about it and the next morning we decided we would go in and pay this membership. The number we got, while in the first 30, was indicative that there was quite a lot of interest.”
“It wasn’t all sweet sailing, it took quite a while to get it established, farmers were used to dealing with the mercantile firms. There was quite a lot of opposition, hesitancy as to whether it was the right thing to be doing. There was a lot of loyalty to the mercantile firms and stock and station firms.”
“It was clear ATS was having an impact on the mercantile businesses, the undertone was ATS was quite a threat,” Taylor says.
The Taylor family has been farming in the district for 147 years and the fifth generation is becoming involved with the original two-digit membership account.
Richard King was farming in partnership with his father at the time the co-operative was established and “herding in members.”
“I remember when it first opened, Dad said to me you better go and buy some posts and wire; I thought we have got plenty of posts and wire, but he said we better help get this business up and running.”
He recalled the early times of ATS operating a simple farm supplies store under the umbrella of Producers Ltd. Chemicals and fencing materials were popular purchases.
“We went into the shop one day and the operations manager Geoff Cranfield announced he was in big trouble. Wilkinson’s Garage had closed down and he had bought the fuel licence. The chairman wasn’t happy.”
“Fortunately, it all worked out in the end and that’s been the best damn thing that ever happened. ATS never looked back because of it and fuel has always been very strong ever since and it still is.”
It wasn’t until the co-operative was set up that farmers discovered the very high mark up on goods.
It is difficult these days to realise how controlled the market was back in the 60s. The manufacturers set the price and retailers who gave a discount would have their supply cut off. As these controls eventually relaxed, particularly the removal of controls on imports, new horizons were created, opening the doors to many important opportunities for the co-operative.
The early directors had very different roles to those of today.
“In those days when it started it was the directors’ job to get out there and get suppliers and drum up members. You went direct to the firms to buy what you needed, there was no shop. The running of the business is very different (now); the directors make decisions at the board table and there’s staff everywhere running all sorts of business, it’s a sign of the times,” Errol Stewart says.
Errol’s son John still has the family’s original membership documents, which were issued within the first 30 memberships, dating back 60 years. The receipt was for the 20 ATS shares, at one pound per share, with the entitlement to membership attached and dated 4 November 1963.
The original membership was for Errol’s father-in-law Clarry Long who, upon retiring from the farm, suggested his daughter Jennifer and her husband Errol Stewart continue with the original membership number for the family farming operation. Sixty years on and the family is still using the same two-digit number which has been handed on down through the generations.
One of the big positives noted was the convenience of paying just one account.
“You got one account per month, paid the bill on the 20th, all done.”
“You could leave home without your wallet, drive all around town, buy all you want, give your number. Times have changed and you need your card now.”
In 1975 ATS secured its 500th member, and membership doubled to 1,000 in 1981.
Producers was the buying group and retail arm of ATS for 10 years from July 1976 to June 1986, through which most of this time the business was stationed on Havelock Street in the Stephenson’s building purchased in October 1977.
In 1986 the Producers Group decided to become part of the CRT (Combined Rural Traders) operation. ATS opted out and rebranded the retail store under North Island business Farmlands with the main purpose being to purchase specific chemical.
At the June 1986 annual meeting members voted to approve an alliance with Farmlands which became the buying group and retail arm of ATS, taking effect in July 1986. The co-operative purchased the Dalgety building on Burnett Street in 1988 with the retail shop opened at this time.
ATS eventually became independent from Farmlands with the transition taking place in July 1990. Later CRT was keen to get a hold of the cooperative but that was never entertained.
“CRT desperately wanted ATS, particularly for the chemical side of it. ATS was always a thorn in the side for the mercantile firms with chemical. It may not have been the cheapest but by God it kept prices down.”
“Over the years bids by bigger co-ops like CRT and Farmlands were turned down and rightly so— why join something you don’t know much about when you have something that is working well, you would lose control of the purpose of the Society in the first place, it’s quite special,” Wayne Gregory says.
The first Instore Days event was held in 1994 and the same year ATS secured its 2,000th member. The retail shop was extended in 1998 and in 2001 field representatives were introduced to the business, while the same year Saturday trading started at the Ashburton store and a store was opened in Rakaia.
By 2002 membership had reached 2,500 and the following year ATS Methven opened. ATS Seed was established in 2009 and ATS Energy in 2011. Ruralco was registered in 2011 but not launched into the marketplace until 2013 as a joint venture with Ravensdown with the ATS card. The intention of Ruralco was to expand the ATS offering nationwide.
The divestment of ATS’s card and Mobil fuel business into Ruralco left the co-operative with the trading divisions of farm supplies, electricity, fertiliser and ATS Seed.
At the South Island Fields Days in March 2017 Ruralco was launched as the customer facing brand replacing ATS.
In 2013 the co-operative celebrated its golden anniversary, and the following year was boasting a membership of 3,500. A new card platform was launched in 2022 ahead of the 60th anniversary celebrated on August 21, 2023.
The past 60 years of agriculture in Canterbury has seen some vast growth, development and technological innovation.
Early members have watched the face of farming change and with it the many changes for Ruralco as it moved on the journey with the farming community. Irrigation played a big part, developing industries and opportunities for the Ashburton District as a whole.
Agribusiness and farming have evolved and forced change with advancements in technology and machinery, stock and seed genetics, environmental compliance, farm audits, health and safety.
Farming over 60 years has been about riding through the hard times and enjoying the good times.
Technology, smart phones, GPS, the mighty power of machines has taken over the six-horse Clydesdale teams.
“The dust has gone, it’s about licence to operate; young farmers want to be out on the farm doing things, not at home in the office smothered in paperwork. The fun (of farming) has been lost.”
While Ruralco has rightly moved on the progressive agriculture journey, all at the gathering of the two-digit plus one group agreed that the original mission statement must never be forgotten.
They noted as quoted: “Nothing stays the same, but you can’t forget why it started. It has served the co-op and its shareholder members for six decades and up to five generations of family.”
“It must continue to serve the same while growing to adopt developing technology and science while also adapting to the increasing demand for compliance and environmental regulations that continue to distract from the role of the grassroots food producing farmers.”
“The next 60 years of the co-op – who knows what it will be but one thing for certain is it must never be forgotten why it was started and that farming is the core business.”
“Ruralco must retain its shareholder cooperative and keep farmers on the journey with a strong rural voice around the table.”
The friendly, knowledgeable staff don’t go unnoticed. “That’s one of the most important things, good staffing in the outlets, friendly and helpful, the personal touch goes a long way and the small things count,” the group noted as it concluded, citing the wrapping of Christmas presents as something always appreciated.
“The original ones at the meeting in 1963 would be absolutely thrilled to see us here today and be satisfied with what they started for future generations.”
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