In a statement in response to an inquiry from the Otago Daily Times, chief executive Garry Diack said the fertiliser company was proposing "a number of changes" to its organisational structure and had begun consulting with potentially affected employees and their representatives.
Any changes were expected to be determined by the end of May and, while that consultation process was under way, it was inappropriate to comment further, he said.
The past 18 months had been challenging for food and fibre production in New Zealand, Mr Diack said. Weather disruption and increasing costs (fuel, interest rates and volatile fertiliser prices) meant farmers and growers were buying significantly less fertiliser.
"Our projected sales volumes for this financial year are looking to be significantly down on the previous financial year, and it is unlikely that fertiliser demand will return to traditional levels in the immediate term.
"In light of these challenges Ravensdown has reviewed our business model to realign it with reduced demand, and to ensure continued investment in capabilities required for future support of our farmers and growers," he said.
Ravensdown had a strong balance sheet and the review was designed to realign its operating model and capabilities to changes in the industry and market.
It was not a consequence of the impact of Cyclone Gabrielle on Ravensdown’s Hawke’s Bay operation at Awatoto, Mr Diack said. The company was actively planning for a resumption of manufacturing at Awatoto soon.
