23 Feb 2012

PGG Wrightson registering Chinese office for future trade

7:00 am on 23 February 2012

PGG Wrightson is close to registering a Beijing office to expand its ties to China.

The rural services firm, which is half owned by the Chinese firm, Agria, reported a net profit of $3.1 million in the final six months of last year, a turnaround from in the same period a year earlier when it lost $5.9 million.

The sale of the company's finance arm to Heartland helped its bottom line, by reducing debt servicing costs, while all the other parts of its business grew.

China is part of PGG Wrightson's growth plans, and it hopes to eventually export dairy herds and grass seed there.

PGG Wrightson's managing director George Gould says the plan is still in the development phase.

He says PGG Wrightson's major shareholder in that area Agria has been very supportive and helped get the office established.

Mr Gould says PGG Wrightson is moving towards registration which gives certain trade benefits.