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 Elders to trial fertiliser shipment 

Elders to trial fertiliser shipment

15 Mar, 2009 03:00 AM
Elders has announced plans to import 50,000 tonnes of urea to Australia in a trial shipment.

The urea is bound for the Western Australian market and is expected to arrive in two shipments in late April.

Elders Rural Services managing director Mike Guerin said that the trial shipment had been organised to assess opportunities to deliver better value for clients.

“Fertiliser is right up there as one of the major costs for our clients in the cropping sector," he said.

"The last year, in particular, has seen extremely high wholesale prices which we know have been sorely felt by growers.

“But urea is a globally traded commodity and, with the approach of the planting season, we are keen to try to see if we can deliver a better outcome for growers by increasing competition in the supply of urea into Australia.

“We are delighted to be able to do that in co-operation with our joint venture partner in grain, Toepfer International.”

The Elders Toepfer joint venture will be the fertiliser importer and will manage logistics for these shipments.

“We believe that the addition of new players to the fertiliser market can only be a positive move, generating increased competition and supply options for the benefit of Australian primary producers," Mr Guerin said.

Elders has been involved in the fertiliser industry for several years now through its Elders Landmark Fertiliser joint venture and currently owns 50 per cent of Hi-Fert.

The trial shipment is independent of these existing interests.

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Date: Newest first | Oldest first
Urea is not only a major cost to farmers in $ terms but also a major profit item for sellers. That's 5,000,000 tonnes of organic matter that will be chewed up in the soil if used excessively. So much for a carbon sink, methane production in stock and soil and water degradation.
Posted by Richard Woolley, 16/03/2009 8:57:10 AM
If Elders' genuine objective is to deliver increased competition and better value for clients in the fertiliser market via urea importation, then it begs the question, what have they been doing with Elders Landmark Fertilisers (ELF) all these years? Wasn't that initiative meant to be about generating competition and a better deal for their customers? Is this initiative from Elders more about gaining a competitive advantage over Landmark, a quick buck in fertiliser, a shot across the bow of IPL or legitimately a better deal for farmers? You have to question the motive of any listed entity who profess to put their customer ahead of their own profitability!!
Posted by Jim, 16/03/2009 10:25:36 AM

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