What began with two shopfronts opened by Gerard Hines and Chris Duff at Harden and Young in April 2006, Delta Agribusiness rapidly emerged as a leading agricultural provider and is now in the sights of Elders as part of a $475 million acquisition. Photo: Delta Agribusiness Facebook.
Grain Producers Australia (GPA) has welcomed the Australian Competition and Consumer Commission’s (ACCC) decision to delay its ruling on Elders Limited’s proposed $475 million acquisition of Delta Agribusiness, which is headquartered in the Hilltops town of Young.
Originally set for 13 March, the ACCC has extended the timeline to seek additional information from the merger parties with a revised provisional decision date expected to be announced “in due course”.
In what began with two shopfronts opened by Gerard Hines and Chris Duff at Harden and Young in April 2006, Delta Agribusiness has rapidly emerged as a leading agricultural provider, now boasting 64 retail stores primarily in regional areas of NSW, Victoria and South Australia, as well as a wholesale business supplying independent rural retailers in Western Australia (Delta WA).
Their services support broadacre cropping, horticulture, viticulture and livestock farming but beyond the stores Delta also operates Four Seasons Agribusiness, specialising in agricultural chemicals and animal health, and holds a minority stake in Goanna Ag, a company focusing on irrigation technology and analytics.
Delta also provides access to real estate and finance services through referral agreements with a real estate agent (Land, Agribusiness, Water and Development (LAWD)) and a bank (DLL Group) respectively.
The company reported $835 million in revenue in the last financial year, with fertilizers and crop protection products making up 67 per cent of total sales.
Its extensive retail and advisory network has always been seen as critical to providing independent competition against larger players like Elders and Nutrien.
But GPA and other farming organisations have strongly opposed the takeover, announced in November 2024, warning it could reduce competition in the rural supply sector and increase input costs for Australian agricultural producers.
They argue that ongoing consolidation in the industry has already weakened competition, and allowing Elders to absorb Delta would further limit access to competitively-priced fertilizers, crop protection chemicals and seeds.
With a history dating back to 1839, Elders occupies a significant place in the Australian agricultural market with 245 retail stores across all states and territories as well as a wholesale distribution network Australian Independent Rural Retailers (AIRR).
In addition to rural merchandise and agronomic services, they offer a range of livestock and wool agency, real estate, finance and feed and processing services across Australia.
In January, GPA submitted to the ACCC’s review of the proposed takeover, opposing the deal.
GPA Southern Director, Andrew Weidemann, said that submission to the ACCC review process was informed by invaluable input provided by GPA’s state members, for grain producer members and complemented by those of other farm commodity representatives.
Mr Weidemann said members were particularly worried about a “creeping tide of consolidation” in rural supply markets, which has progressively reduced competition over the past decade.
GPA’s confidential submission to the ACCC highlights 30 locations where Elders and Delta currently compete directly.
It says GPA is “highly sceptical” about whether the proposed parts of this merger entity, if allowed to proceed, will continue to “vigorously compete” in the future, adding to the risk it will lead to a “substantial lessening of retail competition in multiple locations around Australia”.
Mr Weidemann said the ACCC’s delayed decision would allow more time to gather the information needed, to properly consider the proposal and ensure producers were protected; especially from increased input costs which were already at historic high levels.
Elders has always maintained Delta would continue operating with minimal changes post-acquisition.
Last November, Elders CEO Mark Allison described it as a strategic step to boost efficiency and investment, highlighting the potential benefits of economies of scale for customers.
“Delta gives us greater access to key local retail markets and brings a market-leading agronomy and farm advisory team. This will complement and expand our range of products and services for rural and regional customers, particularly in NSW, North West Victoria, South Australia and Western Australia,” Mr Allison said.
He also emphasised that the acquisition would strengthen Elders’ technical service network and its capabilities in AgTech and precision agriculture through Delta’s farm advisory business and its renowned network of specialists.
Delta’s managing director and co-founder, Gerard Hines, said Delta’s management and employees would remain unchanged under Elders’ “light-touch” integration strategy.
“Elders and Delta share strong cultural alignment as trusted agribusinesses focused on delivering value to customers,” he said.
“Our management team will stay in place, and we are thrilled to continue offering innovative and value-adding business solutions to our customers with the additional support of Elders,” Mr Hines said.
However, the ACCC’s delay comes as high input costs remain a major challenge for grain producers, particularly in the wake of global supply chain disruptions.
GPA CEO Colin Bettles said the extended review period aligned with heightened scrutiny on rural market competition, especially given that high input costs were identified as the number one issue in GPA’s recent survey of grain producers.
The ACCC’s decision delay means industry stakeholders will continue closely watching the review process, given its potential long-term impact on competition in Australia’s rural supply sector.
Loading ...
