Landmark's tough year

The redundancies - mostly at head office in Melbourne - accompanied the October arrival of newly-appointed managing director Tommy Warner from Kansas.

He replaced Richard Norton who had been at the helm since North American farm inputs giant Agrium bought Landmark in late 2010.

Former stock agent Mr Norton resigned in August and begins work this month with rival rural agency group Ruralco as general manager for network development.

Management and structural changes across the company also triggered the departure of Landmark's general manager of agency operations Cameron Hall, who moved to Elders, and former Viterra agriproducts boss Peter Davey, who had headed up the Agvantage wholesale business following Landmark's purchase of Viterra's farm retail operations last year.

The job cuts also gutted Landmark's corporate marketing positions.

Mr Warner, who previously headed Agrium's High Plains division covering about 38 crop supplies stores in western Kansas, landed in Australia charged with overseeing the management "realignment".

He confirmed tough seasonal conditions had bitten into Landmark's operations in 2013, just as they had impacted hard on rivals Elders (which recorded its fifth successive annual loss) and Ruralco (which had a 44 per cent profit slump to of just $8.7m).

In fact, despite some buoyant seasonal and trading conditions in the past three years, Agrium management accepted the farm services market in Australia had proven highly competitive since the North Americans paid almost $400m to buy into the local market three years ago.

"It's a very good business with very good people and Agrium definitely wants to focus on developing it," Mr Warner said.

"If they were interested enough in making the big effort to buy into Australia, they're committed to ensuring Landmark is a long-term successful operation."

While agronomy services and sales of inputs such as fertiliser and agricultural chemicals formed the basis of Agrium's business activities and growth in the US, Canada and South America, Mr Warner said Landmark's big livestock, insurance and real estate interests in Australia were prized by the parent company just as much as crop services.

Despite recent industry speculation that Landmark's restructure indicated its livestock division was being downgraded or undermined, he regarded the livestock business as "exciting".

Admittedly Agrium had no connection with livestock marketing and services back on its home turf, but he said it was quite possible that Landmark's stock activities could migrate to other corners of the global business.

Landmark is already significant player in livestock exports to Asia, Eastern Europe and South America.

"Agrium knows the inputs business very well - fertiliser and crop production have been at its core in Canada and the US," Mr Warner said.

"But that doesn't mean the Australian business must be in the same mould."

Changes to the company's senior management had created a flatter corporate structure which Mr Warner hoped would encourage staff and clients to contribute ideas and observations about where Landmark could improve its service and grow.

His own background in crop consultancy and inputs retailing meant he was also particularly keen to work closely with the company's livestock team to help make business decisions with a strong customer focus.

"Obviously I've got a lot to learn," he said.

"I'm very open to hearing what clients and our branch staff are thinking, there's no question about that.

"I haven't had a lot of critical feedback to date, but I want to hear it if somebody has something to contribute - just so long as it comes with some constructive ideas on how we can improve."

Mr Warner's rapid three-month learning curve has included visits to about 70 branches across Landmark's network of 350 corporate-owned franchised and partnership businesses.

He has spent much of his short time in Australia on the road in all States except Tasmania and the Northern Territory.

He has also made the effort to meet key clients on-farm and wants to expand on those opportunities.

"I like being out in the field - it's the way I like to manage," he said.

Late last year Agrium's retail president Richard Gearheard told Landmark staff the parent company's global strategy was to "centralise administrative functions and procurement, while decentralising customer relations".

"It's important that we delegate sufficient authority to local facilities to accommodate customer needs," he said.

Although one of the world's biggest farm sector retailers and service providers, the company's philosophy was to "act small".

Mr Warner said Landmark was focused on building a good quality team to ensure it could strengthening the quality of its offering to Australian farmers.

"If you truly believe improving the quality of what you offer, all the other stuff - growth, profitability and market share - will take care of itself," he said.

Next week: Fresh from the US, who is Tommy Warner and what are his plans for Landmark?