09 March 1998
NEF implements survival strategy
SCOTLANDS largest agricultural supplies co-operative North Eastern Farmers is aiming to restore its beleaguered fortunes with a new strategy for survival.
The strategy revolves around the definition and expansion of the core business, reduction of the cost base, greater involvement with other co-ops and improvements in management and administration.
The co-op first hit crisis in 1995 when it lost £683,000. It has continued to sustain losses. Last year it turned in a pre-tax loss of £964,000.
The new strategy, designed by Brian Hutchison, managing director, seeks to treat each business as a separate entity to make sure there is no cross-subsidisation. He says the nub of running a co-operative is of balance between service and commercial imperatives.
- The Scotsman 09/03/98 page 18