Allied Farmers is getting out of the rural merchandising game and will either sell or close its poorly performing rural stores.

Allied Farmers has eleven stores, which trade as Taranaki Farmers and King Country Farmers.

In a statement to the stock exchange yesterday, Allied Farmers Rural chief executive Steve Morrison said the rural merchandising leg of the company was performing poorly, and forecast to continue doing so.

He says he is confident the company will increase its profitability by ditching the assets, and focusing more intensely on its livestock business.

Meanwhile, Allied Farmers chairman Garry Bluett says 10 stock agents jumping ship during June to PGG Wrightson is no cause for alarm.

“Well I guess in our industry it happens all the time really – people move from one company to the other.

“We are working on it, we’re recruiting new agents and we’re reasonably comfortable we can get our operation back to normal again.”

Allied Farmers says the stock agents left due to rumours about the company’s financial stability.