Dalgety plc facts for kids
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| Public Listed Company | |
| Industry | Wool together with pastoral and agricultural company or stock and station agency and briefly a foods and agricultural conglomerate and since 1998 principally livestock genetics |
| Fate | PIC retains its own name and a separate identity and continues to display the Dalgety "world" but since 2005 as the major part of animal genetics combine Genus plc |
| Founded | c.1846 in Melbourne Australia |
| Founder | Frederick Gonnerman Dalgety |
| Headquarters |
100 George Street W1, previously 65 Leadenhall Street EC3, London
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England
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Areas served
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In its first century: Australia, New Zealand then from the second half of the 20th century all continents. In 2017 "more than 600 breeding herds in about 40 different countries" |
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Key people
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Frederick Gonnerman Dalgety |
| Products | services to agriculture |
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Number of employees
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16,073 (1992) |
| Parent | Genus plc |
Dalgety plc was once a very important farming and livestock company. It started in Australia and New Zealand as "Dalgety and Company" in the 1840s. The company was controlled from London, England, and its shares were traded on stock exchanges there.
For over a hundred years, Dalgety was a leader in the wool trade. But in the mid-1900s, wool became less popular because of new man-made fibers. This meant Dalgety had to change. The company started investing in different types of businesses and in other countries. It sold off many of its Australian and New Zealand investments.
Eventually, Dalgety became a large food and farming business, mostly in the Northern Hemisphere. However, a serious animal health issue, often called "mad cow disease," badly affected its main businesses in the UK. In the late 1990s, Dalgety sold off most of its operations. What was left became focused on animal genetics, especially pigs. The company was renamed PIC International. In 2005, it joined with another animal genetics company, Genus plc, which specialized in cattle. Today, this combined company is a world leader in animal breeding science.
Contents
Dalgety's Journey: From Wool to Genetics
For a long time, Dalgety's main business was the wool trade in Australia and New Zealand. This trade was started by John Macarthur in New South Wales. Dalgety's success depended on wool farmers.
Australia's sheep numbers grew a lot in the 1800s. By 1903, a long drought cut the number of sheep almost in half. Numbers didn't return to 100 million until 1926. The United Kingdom bought about half of Australia's wool exports.
After World War II, there was a lot of extra wool. An agreement was made to sell it slowly. Later, the Korean War caused wool prices to skyrocket. But the next year, prices dropped sharply.
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Wool prices kept falling but reached their lowest point in 1971. At that time, there were a record 180 million sheep. The large number of sheep helped make up for the low prices. Schemes were set up to help stabilize prices, but government support ended in 1999.
In the 1990s, the wool industry realized that wool was just one of many fibers. People could choose cheaper man-made fibers. By 1998, synthetic fibers made up 49% of clothing fibers, cotton 42%, and wool only 3%.
Frederick Dalgety's Vision
In December 1842, Frederick Gonnerman Dalgety arrived in Melbourne, Australia. He managed a new business and soon bought it. By 1848, Dalgety was a successful independent merchant. He focused on trading with settlers, providing goods and buying their farm products.
He visited England in 1849 to improve his business connections. When he returned to Australia in 1851, the gold rush had begun. Dalgety continued his general business. He expanded his farming trade, sold goods to gold miners, and bought a lot of gold from them. From 1851 to 1855, he made about £150,000 just from gold trading.
Becoming Dalgety & Company
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In 1854, Dalgety moved to London to set up the main office for his growing business. At first, it mostly dealt with the farming industry in Victoria, Australia. He brought Frederick Du Croz as a partner in London. Charles Ibbotson stayed in Australia as a manager-partner.
Dalgety returned to Victoria in 1857 to set up another manager-partner, James Blackwood, in Melbourne. After 1859, Frederick Dalgety lived permanently in England. His company's main office stayed in London until the end of the 20th century.
By 1884, Frederick Dalgety had ten partners. They had offices in London, Melbourne, Geelong, Launceston, Dunedin, Christchurch, and Sydney.
Dalgety & Company Limited: Going Public
Dalgety's business, Dalgety, Du Croz and Co, needed more money to grow. They also faced competition from other companies. So, they became a public company called Dalgety and Company Limited. It was officially registered in London on April 29, 1884. The new company's shares were listed on the London Stock Exchange in August 1884.
Over the next three years, Dalgety opened new offices in Queensland and Western Australia. The company's properties and other assets grew by 50%. Frederick Dalgety remained actively involved as the largest shareholder and chairman until he died in 1894.
After its founder died, Dalgety and Company Limited continued to expand. In July 1898, they made a deal with the Russian consul in Melbourne. This allowed Russian ships to carry wool from Australia to Europe.
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By 1909, Dalgety had many branches across Australia and New Zealand. In 1927, they expanded into East Africa. In 1959, they bought most of the African Mercantile Company. This company was similar to Dalgety's Australian business but operated in East Africa.
In the late 1950s, Dalgety's main business started to face challenges.
Changes in the 1960s
By 1961, Dalgety's main business involved operating wool stores in major cities. They were also the world's largest wool-selling company. As agents for livestock, Dalgety arranged animal sales. They also had a strong business selling goods. The company even acted as agents for air and shipping lines, and for insurance.
Dalgety operated in 446 locations around the world. To deal with falling profits, they made some changes. They sold off old, multi-story wool stores in expensive city areas. These were replaced with modern, single-story buildings on the city outskirts. These new stores allowed for more efficient machinery.
Joining Forces: Dalgety & New Zealand Loan
In November 1961, Dalgety and Company Limited merged with a major competitor, New Zealand Loan and Mercantile Agency Company Limited. Dalgety and Company Limited changed its name to Dalgety and New Zealand Loan Limited, often called Dalgety NZL. By 1963, this merged company was the largest farming business in Australia and New Zealand.
Dalgety's Wharves
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Dalgety wharf No. 1 at Millers Point, Darling Harbour
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The SS Medic ship leaving Millers Point
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Dalgety wharf at New Farm, Queensland, with the SS Pericles loading
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Loading frozen beef for London at Dalgety's wharf, Brisbane
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Dalgety building in Fremantle, Western Australia, 1902
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The 1970s: A Shift to Food
In the 1970s, Dalgety started to move its investments and operations. It shifted from farming businesses to food industries, especially in the Northern Hemisphere.
New Structures and Acquisitions
On June 30, 1970, Dalgety New Zealand Loan changed its name to Dalgety Limited. It became a holding company, meaning it owned other companies. New operating companies, Dalgety Australia and Dalgety New Zealand, took over the local businesses.
Dalgety Australia bought the Stonyfell winery in South Australia in 1972. However, by 1978, it was sold, and the winemaking part of the business closed.
Dalgety also bought Peter Dumenil & Co, a company specializing in processing and supplying meat for the catering industry in London. A small English animal feeds business, Grossmith Agricultural Industries, also joined the group.
In 1966, Dalgety expanded into North America. They bought Balfour Guthrie, a company that imported and exported goods. It also owned a Canadian timber business and a Californian poultry farm.
Entering Biotechnology: PIC
In 1970, Dalgety made a very important move. They bought a share in a biotechnology company called Pig Improvement Company (PIC). PIC was a UK-based company that bred special pigs and supplied live boars to pig farmers. This pig breeding business would grow very strongly.
PIC became a central part of the old Dalgety business. It grew into an international pig and shrimp breeder. In 2005, PIC merged with another leader in biotechnology, Genus plc, which bred cattle.
At the end of 1970, Dalgety was listed as 17th in sales among major British companies. However, it was 121st in profits. Dalgety sold its head offices in London for three times the cost of its investment in the pig breeding company.
More Acquisitions and Sales
In late 1972, Dalgety successfully took over Associated British Maltsters. Profits bounced back in 1973. The Dalgety farming division in Western Australia was sold in 1974.
By 1975, the UK division was making the most profit for Dalgety. In 1977, Dalgety bought Federated Chemical Holdings. This company distributed chemicals in North America, Europe, and Asia.
Spillers and Martin-Brower
At the end of 1978, Dalgety raised a lot of money to bid for Spillers. Spillers was a large business involved in flour milling, bread, pet food, and animal feeds. The takeover was difficult but was finally agreed upon a year later. Spillers closed many bakeries and sold some of its plants.
In 1979, Dalgety also bought Martin-Brower from the USA. This company was one of the world's largest distributors of food and packaging for fast-food restaurants. Martin-Brower supplied products to McDonald's.
By 1979, Dalgety's shift to the Northern Hemisphere was almost complete. 22% of its business was in North America and 35% in Britain.
The 1980s: Further Transformations
Dalgety Farmers Limited
In July 1983, Dalgety Australia merged with Bennetts Farmers and Farmers Grazcos Co-operative. This created Dalgety Farmers, which became the largest farming business in Australia after Elders. Dalgety plc owned 65% of Dalgety Farmers at first.
Over the next few years, Dalgety UK reduced its ownership in Dalgety Farmers. By 1992, the ANZ Bank gained control of Dalgety Farmers. In 1993, ownership passed to Wesfarmers Limited. The Dalgety name was eventually dropped from Wesfarmers Dalgety in 2001.
Dalgety also bought the animal feeds, seeds, and crop control businesses from Ranks Hovis McDougall in 1983. This was one of Dalgety's most expensive purchases.
Dalgety was now a food and farming group. It was often called the Dalgety Spillers combine. The Australian part of its business had shrunk to just over 10% of its total sales.
Centenary and New Acquisitions
1984 was Dalgety's 100th year. The company celebrated with a special banquet. They also announced the sale of Dalgety Foods, their American frozen vegetable and fruit business.
In 1985, Dalgety bought Gill and Duffus, a company that traded raw materials like cocoa and coffee. This was meant to expand Dalgety's reach around the world. However, problems in the tin market led to big financial losses, and Gill and Duffus stopped trading metals.
In 1986, Dalgety bought Golden Wonder, a company that made potato chips. They also bought the Ross potato distribution business. Dalgety also sold its insurance business, Clarkson Puckle.
Spillers launched Homepride Foods, which included Dalgety's packaged flour and sauces.
Funding and Focus
Dalgety sold several businesses to raise money and reduce its debt. They sold Associated British Maltsters and Balfour Guthrie, their Canadian timber business. These sales brought in a lot of money.
Despite these sales, Dalgety announced record profits of £92.5 million. The company stated it was committed to foods, farming, and trading raw materials as its main activities. Branded foods made up 53% of its profits.
Dalgety then sold its commodities trader, Gill and Duffus, for £87 million.
The 1990s: Major Changes and Challenges
Restructuring and Sales
The 1990s brought big changes to Dalgety. The chief executive officer left in 1989 and was replaced by Maurice Warren. Warren led a major restructuring of the company. Dalgety continued to sell off parts of its Australian investments. By the time these sales were finished, Dalgety's Australian investments were worth less than £30 million.
In 1990, Dalgety was added to the FTSE 100 share index, which lists the top 100 companies on the London Stock Exchange. In May 1991, Dalgety sold its fresh produce business in the USA.
Snacks and Pet Foods
In February 1992, Dalgety bought Sooner Snacks for Golden Wonder. This gave Golden Wonder 20% of the snack food market. They also sold Federal Bakery.
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In 1993, Dalgety bought Paragon Petcare. Then, Dalgety bought Quaker Oats' European pet food business for £442 million. This made Dalgety's Spillers pet foods the second biggest in Europe. They planned to sell Golden Wonder and Homepride to raise money.
Dalgety sold Pot Noodle for £180 million. Homepride sauces went to Campbell Soup for £59 million. Golden Wonder was sold to its management for £54.6 million.
Impact of Animal Health Issues
A serious animal health issue in cattle, known as BSE or "mad cow disease," had a huge impact on Dalgety. This disease caused a collapse in sales of Spillers' animal feed because so many cattle were affected. An EU ban on British beef exports was very costly for Dalgety. There was also a contamination scare at their pet food factory in the Netherlands.
Dealing with this crisis distracted managers. The costs of combining the Quaker Oats business were higher than expected. When the company announced its full-year profits in September 1996, they were half of what was expected.
By May 1997, some senior executives had left. A warning about falling profits was issued. The chief executive resigned in September. Dalgety announced a major restructuring plan. Spillers, the food ingredient business, and the USA fast-food distributor, Martin-Brower, were put up for sale.
Homepride was sold in January 1998. Martin-Brower was sold to Reyes Holdings in the USA. These sales brought in a total of £1.2 billion. Only about a quarter of the original Dalgety business remained. This included pig breeding, cattle feed, fertilizer, and seeds.
PIC International: A New Beginning
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Dalgety was renamed PIC International Group plc. The PIC name came from the Pig Improvement Company, which Dalgety had bought in 1970. The Dalgety board found they had more than £1 billion after selling off businesses. About two-thirds of this money, £675 million, was returned to shareholders.
PIC International was renamed Sygen International in 2002. This new company included PIC International and a new business called SyAqua, which provided breeding stock to shrimp farmers.
Sygen, which supplied live boars to pig farmers, was bought by Genus plc. Genus, based in Crewe, England, had grown from the former Milk Marketing Board.
The company's value on the stock market grew significantly. By 2011, it was worth almost £600 million. Its business was recognized as a world leader in the science of breeding cattle and pigs. This specialized area seemed secure because the long natural breeding cycle of animals would make it hard for new competitors to catch up quickly.
Images for kids
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An ABM malt kiln in Louth, Lincolnshire, shortly before demolition
