Nufarm leads 'buy local' ag chem push to keep domestic production robust

A survey of 100 farm chemical users has found more than 85 per cent were likely to change their purchases to Australian-made products if they knew it helped guarantee supplies of domestic crop protection inputs.

The random poll of mixed enterprise and grain-only producers in Victoria, NSW, Western Australia, Queensland and South Australia was commissioned by major Australian chemical player Nufarm to gauge how much value farmers placed on domestic product compared to imports which make up a big proportion of the local market.

Responses showed 98pc of producers were likely, quite likely or highly likely to purchase Australian crop protection solutions.

The vast majority were also likely to change their crop protection purchases once they learned products were made by a local company supporting local jobs.

"I am more inclined to look for something that is Australian-owned at the very least", noted one of the respondents whose comments reflected the survey mood.

More than 90pc of respondents believed reliable supplies of crop protection inputs were highly important.

Nufarm Australia's commercial general manager Peter O'Keeffe said the volatility experienced across the agricultural supply chain during coronavirus disrupted 2020 had clearly given some farmers reason to pause and consider the impact of their purchases.

Australia's reliance on a lot of imported farm chemical, particularly from China, triggered big concerns when chemical production stalled overseas as coronavirus hit.

The supply squeeze was particularly evident as farmers rushed to prepare cropping country for winter plantings after early autumn rain in many areas.

Grain Producers Australia chairman Andrew Weidemann said Nufarm's survey findings resonated with concerns his own organisation had.

"The heightened risk we take if we have no formulation company in Australia putting our farmers first is now more evident," he said.

"In this perilous time farmers should stand beside our own and support companies who have been here in the past through thick and thin supporting growers."

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Chief executive officer of farm supplies retail group AgLink Australia Ian Scutt also endorsed the need for domestic supply.

His group, which represents a big number of major independent merchants in crop protection supply chain, was acutely aware of the criticality of local manufacturing.

Managing director of the Australasian arm of international manufacturer FMC, Kristina Hermanson, said her company had definitely benefited, and received positive customer feedback because it had local manufacturing facilities and product available.

"If there was a year when people paid attention to where chemical was coming from, this was it," she said.

Sudden seasonal demands and the supply chain delays in different parts of the world, particularly in March and April, proved "local manufacturing provides a level of flexibility you really appreciate".

"We still depend on active ingredients from overseas, but having our own formulation facilities at Wyong in NSW gave us the ability to read and respond quickly to market changes," Ms Hermanson said.

While many companies also used domestic toll processors to formulate particular lines locally, when demand pressure was high, those toll operators were busy and had waiting lists.

Domestic demand for crop chemical in 2020 had surged early, slowed, then revived again strongly, but was not uniform, with Queensland and West Australian growers experiencing tougher growing conditions.

Nufarm's Mr O'Keeffe said the value of local production and understanding purchasing intentions by farmers and retailers had important ramifications to the industry and the broader economy.

"Australian manufacturing, Australian-made and Australian jobs will be vital to our nation's post-COVID recovery," he said.

Nufarm has used its survey findings to prompt farmers, retailers and the agricultural industry to "choose local" where they can, and in turn, guarantee the viability of an Australian agricultural supply chain important to their operations.

"We are the only global crop protection brand with significant manufacturing assets in Australia, and Nufarm's commitment to being a true partner for growth includes focusing on our Australian heritage," Mr O'Keeffe said.

However, Nufarm has also flagged it will curtail some domestically-manufactured crop chemical lines this financial year after deciding the highly competitive nature of the fungicide and insecticide market was too difficult for it to retain profitable local production.

Fungicide and insecticide categories are much lower volume markets than herbicides in Australia, making it harder for local production to compete with imports.

Mr O'Keeffe said ensuring a consistent supply of domestic crop protection inputs in Australia required farmers, retailers and the agricultural industry generally to "partner together to choose local more often".

In line with that message, Nufarm recently launched an "Australian Through and Through" marketing multi-media campaign in regional Australia, celebrating regional positivity and promoting the company's Australian credentials and local manufacturing footprint in Australia.

"They've never been more important," he said.