THE AUSTRALIAN Competition and Consumer Commission’s announcement today voicing concerns about the proposed take-over of Delta Agribusiness by Elders Limited has been welcomed by Grain Producers Australia.

GPA is concerned that an Elders-Delta merger will reduce on crop-protection chemicals and other inputs in some southern Australian locations.

In January, GPA submitted to the ACCC’s review, opposing the proposed take-over on the grounds of it being seen as weakening market competition and having unfavourable impacts on farmers and rural communities.

In March, GPA supported the ACCC’s decision to delay its originally scheduled date to announce the provisional findings of a decision on the proposed take-over, which provided the ACCC with additional time to seek further information from the merger parties.

GPA southern region director and Wimmera grower Andrew Weidemann said the ACCC’s publication of its concerns at a critical stage in the review process reflected the key points raised in GPA’s original submission.

“The ACCC’s preliminary view is that the proposed acquisition is likely to substantially lessen competition in the retail supply of rural merchandise and related agronomy services in certain local markets,” Mr Weidemann said.

“This reflects the serious concerns and the supporting information, facts and evidence provided by GPA, on behalf of our members, to inform the ACCC’s review process.”

GPA’s submission, which remains confidential, provided the ACCC with data and evidence for decision-makers to consider in their analysis, such as showing 30 different locations based on post codes where Elders and Delta currently have directly competing retail premises.

It also highlighted the need for reliable access to competitively priced crop inputs as being “critical to the profitability and sustainability of Australian grain farming businesses”.

Impact beyond grain

GPA chief executive Colin Bettles said the submission was a reflection of GPA’s robust and legitimate democratic policy development processes, on national matters, engaging the Grains Councils of State Farming Organisations, and relevant expertise.

“The views of GPA’s members, highlighting serious concerns about reduced competition, have also extended to other commodities, not just grains, and call on the ACCC to thoroughly scrutinise the potential competition impacts of this proposed take-over on many types of farmers, in various locations,” Mr Bettles said.

GPA has raised concerns that Elders’ s proposed acquisition, made public in November last year, carried potential competition implications, with risks to input costs and reliability of supply for the Australian grains and other sectors.

Mr Weidemann said GPA’s submission raised genuine concerns about the proposed take-over substantially lessening competition in localised retail markets for rural supplies, and wholesale supply markets for key cropping inputs such as crop-protection chemicals, fertilisers, and seed.

Mr Bettles said he welcomed direct engagement with other stakeholders, including grain-producer groups, to discuss core matters raised in the ACCC’s paper, especially concerns about the weakening of competition and the need to protect the interests of farmers and regional communities.

“GPA’s submission urges the ACCC to oppose the passage of this proposed takeover and we’re pleased the serious concerns we’ve raised have been acknowledged, at this stage in the review process.

“We’ll continue to remain vigilant on these matters, working closely with our members to try to prevent pernicious consequences, of diminished competition.”

Mr Bettles said GPA’s 2025 Federal Election Policy Priorities listed at number one concerns shared by Australian grain producers about high input costs, calling for these costs to be reduced, with local supply and manufacturing boosted, to maintain farmer productivity and sustainability.

He said GPA would continue monitoring the ACCC’s review process closely, to ensure Australian grain producers and rural communities are protected from the potential consequences of reduced market competition.

Source: GPA