A proposed takeover by Elders of Delta Agribusiness has drawn concern from Grain Producers Australia that a "creeping tide of consolidation" was affecting Australia's rural supply markets.
The Australian Competition and Consumer Commission (ACCC) released the proposed merger details for public comment last year and a final decision on the plan has been delayed pending further information from the involved parties.
Countryman reported that GPA's submission to the process was backed by GPA members, who were concerned the competitiveness of the market would be affected.
GPA Southern Region Director Andrew Weidemann said there was a track record of mergers affecting consumers negatively.
“This has occurred progressively over the last 5-10 years through a series of creeping or serial mergers and acquisitions involving wholesale, retail and vertically integrated rural supply businesses,” he said.
“This market evolution has progressively led to a substantial lessening of competition in these critical markets to the detriment of farmers and the wider Australian public.
“GPA is concerned that Elders Limited’s proposed takeover of Delta Agribusiness will substantially lessen competition in localised retail markets for rural supplies and the Australian wholesale supply market for key cropping inputs such as crop protection chemicals, fertilisers and seed.”
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