A decision to stop the sale of fertiliser company Incitec Pivot (IPL) to overseas interests is good news for Australian growers, according to Grain Producers Australia (GPA).
There has been long-running negotiations between IPL and Indonesian state-owned fertiliser manufacturer PT Pupuk Kalimantan Timur (PKT) regarding the sale of IPL's fertiliser arm.
These negotiations have now ceased and the company has announced it is now commencing a previously announced on-market share buyback program of up to $900 million.
The organisation had continually raised concerns over the proposed sale since it became public 12 months ago.
GPA Chair Barry Large said growers relied on IPL.
"Keeping any production and ownership with local interests was a concern in this case as there was potential for a foreign-owned entity to prioritise overseas markets and send supply to their country of origin, rather than supporting local producers," he said.
"These potentially reduced volumes locally would ultimately impact local prices and put unnecessary added pressure on the already tight profit margins growers have to navigate."
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