AWB Limited (AWB), Elders (a wholly owned subsidiary of Futuris Corporation Limited) and WMC Resources Limited (WMC) announced today that they have established a strategic partnership in the fertiliser industry which will increase competition and drive cost savings in the supply chain.

A joint venture company, ELF Australia Pty Ltd (ELF Australia), will be formed by Landmark (an AWB Company) and Elders, to acquire a 66.66 per cent share of WMC’s wholly owned subsidiary company, Hi-Fert Pty Ltd (Hi-Fert).

This means that Landmark, Elders and WMC will each have one-third equity in Hi- Fert.

It is intended that ELF Australia will negotiate the purchase of fertiliser for the Landmark and Elders rural retail distribution outlets in the eastern and southern states of Australia. ELF Australia will source fertiliser from Hi-Fert and other suppliers.

This initiative between three of Australia’s major companies in the east coast fertiliser market will enhance capability and deliver substantial benefits to stakeholder groups.

Today’s announcement does not affect existing relationships for Hi-Fert customers. Despite the change in the ownership arrangements, it will be business as usual.

Elders is one of Australia’s leading distributors and retailer of products and services to agriculture providing chemicals, fertiliser and agronomic advice from over 260 locations in rural Australia.

Landmark is a leading supplier of agribusiness products and services operating from more than 400 outlets - about half of which are company owned and the remainder operated by franchisees, agents and affiliates.

WMC is Australia’s only producer of ammonium phosphate fertilisers from its operations in Queensland’s north-west.