PGG Wrightson has confirmed it is progressively closing its five Australian real estate and livestock offices, in view of current market conditions.
The offices, an offshoot of the big New Zealand rural services group, have been based at five sites in New South Wales and Victoria and employed 39 staff.
This follows a decision by the parent company on January 19, reflecting, in particular, the downturn in the dairy industry.
The Australian offices were opened about two years ago mainly to facilitate New Zealand investment in the Australian dairy industry.
PGG Wrightson in June last year announced it had added Trans Tasman Rural Marketing – a leading player in the sale of dairy farms in north-eastern Victoria – to its Australian stable.
The decision will have no impact in the Australian operations of PGG Wrightson Seeds, a spokesman for the company said yesterday.
This division will continue to operate in Australia.
In New Zealand, PGG Wrightson's shares tumbled 18pc on Wednesday over debt speculation and the prospect of a legal battle between it and Silver Fern Farms over compensation for a failed partnership deal, according to a New Zealand Herald news report on Thursday.
