Ruralco has announced plans to move away from its previous growth strategy and focus on its core local market.

Ruralco chief executive Tony Aitken said the shift from a national focus was a deliberate move back to being more shareholder and farmer-focused.

"This change doesn’t mean downsizing or a reduction in jobs, and has no negative impact on the benefits of being a shareholder," he said in response to a number of questions from the Guardian.

"Mid Canterbury is at the heart of our homeland, so it is logical we retain our focus locally.

“Our purpose is to keep local farmers thriving for generations to come by offering real value with the latest innovation in farm supplies, services and expert advice," Aitken said.

Ruralco chairperson, Sir David Carter, said the decision to consolidate and return to the co-operative's original vision was made after careful consideration by the board and Ruralco’s executive team following feedback from both shareholders and merchants.

The co-operative would retain connections with existing shareholders and merchants but would not actively seek business connections beyond the Canterbury region, he said.

“Ruralco and its local farming community has achieved a lot together over the last 60 years. This year we celebrate our 30th Instore Days, another example of how we support our community and our farmers. Our people are your people and we are looking forward to our continued involvement and support of our local farming community," Carter said.

The co-operative plans to roll out initiatives to highlight the renewed local focus, including meetings with local farmers to identify how best to support farming communities.

Ruralco will introduce exclusive shareholder and merchant networking events that inform and encourage collaboration and a Spend for Your School promotion with a chance to win $500 each month for local primary schools.

The Ashburton-based farmer co-operative was established in Mid Canterbury as the Ashburton Trading Society (ATS) in 1963 by local farmers looking to lower farm input costs.

The change in focus comes after Ruralco had a staff restructure last year and reported a $2.1 million loss for 2023, as tough times on-farm tightened farmers' wallets.

At the time, Carter declined to comment on how Ruralco's financial results had compared to its budget forecast saying it was not public information.

He said the 2023 financial year had been challenging for agriculture and for Ruralco, with the co-operative’s business closely intertwined with farmers’.

Ruralco ran at close to a $3 million loss before a tax credit reduced that to $2.1m. Carter said the tax credit was provisional tax paid throughout the year based on projected earnings.

In 2023, Ruralco spent an additional $1 million in salaries and wages and $1.8 million more in other operating expenses compared to the 2022 year.

Turnover was $293.3m for 2023, up from $279.1m in 2022.

• Sharon Davis