Farm groups warn of competition gaps following Elders-Delta merger

The recent merger between agribusiness giants Elders and Delta has sparked concerns about competition and pricing in regional Australia, particularly in areas with few rural suppliers.

Andrew Weidemann, Southern Director and RDE spokesperson for Grain Producers Australia, said while the merger was expected, it leaves many regions with limited competition.

“In 33 sites we identified, there’s potentially no real competition left,” Mr Weidemann said.

The Australian Competition and Consumer Commission required Elders to divest six Delta stores in Western Australia, but Mr Weidemann said that measure doesn’t go far enough.

“There were at least another ten in WA, plus several across Victoria and New South Wales, that we felt needed more competition,” he said.

Rebecca Reardon, Vice President of New South Wales Farmers, highlighted similar concerns for towns where Delta and Elders were the only rural merchandising options.

“By combining those two entities, you’re essentially taking away competition in a lot of towns in New South Wales,” Ms Reardon said.

Both representatives warned that reduced competition could drive up prices for essential farm inputs.

“All this is going to do is mean there’s less competition and we’re going to see an increase in prices,” Ms Reardon said.

Mr Weidemann also noted that the merger could encourage farmers to explore alternative supply models.

“It might open opportunities for co-operatives or for farmers to go direct to manufacturers,” he said. “We’re already seeing that shift in some regions.”

Both organisations say ongoing monitoring will be essential to protect farmers’ access to supplies and competitive pricing.

“At the end of the day, it’s about making sure farmers have access to what they need, when they need it,” Mr Weidemann said.

Ms Reardon added that regulators should closely track prices and competition in New South Wales over the coming years.