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ABC RURAL | Elders' purchase of Delta Ag sparks concerns of market monopoly for farmers

Farm industry reps are voicing concerns that a proposed merger of Elders and Delta Ag could create issues with price competitiveness by creating a duopoly situation.


ABC Rural detailed that the Australian Competition and Consumer Commission (ACCC) had delayed its plans to make an announcement on the proposed merger, now seeking more information.


Currently, Elders operates 245 ag retail stores and Delta Ag, 68, around Australia.


ABC Rural reported that in some areas, these two retailers were the only option for supplies and that a merger could have serious implications.





Grain Producers Australia Western Region Director and Beverley grower Duncan Young said GPA opposed the merger, with concerns of a "creeping tide of consolidation" across rural markets.


Mr Young said unlike other states, Western Australia did not have such a strong presence of independent stores to offer alternative options.


"While that may change, they don't have any distribution stores here," he said.


"I can see it maybe it might build up in time, but we can't switch from one to another right now."





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