Bulk commodity, logistics and trade facilitation group, Grainco Australia and agribusiness group Elders announced today the merger of their respective seed businesses following their joint acquisition of the seed division of SGB Australia from Wesfarmers Landmark.

The new company, PlantTech Pty Ltd will become the largest broadacre and pasture seed company in Australia.

Grainco Australia Chief Executive, Mr Dave Woodall said the acquisition of SGB and the merger of Grainco Australia Seeds Pty Ltd and Elders’ Paramount Seeds was good news for the agriculture sector.

“By combining the two companies we will be able to offer a truly national presence, better compete globally and achieve economies of scale that we could not have achieved on our own,” Mr Woodall said.

Mr Woodall said Paramount Seeds had a strong presence in Western Australia and South Australia while Grainco Australia Seeds had performed well in Queensland and northern NSW. He said the acquisition of SGB’s seed division would allow the new company to extend its market reach into southern NSW and Victoria.

“The acquisition and merger will enable both parent companies to extract maximum value from the supply chain and meet customers’ increasing needs for tightly specified inputs to the food chain.”

Mr Woodall said the merger was consistent with Grainco Australia’s vision to build a truly world-class, geographically diversified bulk commodity, logistics and trade facilitation group that delivered superior customer service and created improved value for its shareholders.

“We have long maintained that the success of Grainco Australia’s group of companies will be achieved by adopting a managing influence from farm to port or domestic customer, via partnering with the best.”

Elders Managing Director, Mr Greg Hunt welcomed the merger with Grainco Australia Seeds and the appointment of Mr David Messina as General Manager of PlantTech.

“PlantTech is well positioned to supply grower customers with the best agronomically effective and commercially viable seeds and to continue to reinvest in research and the development of improved varieties,” Mr Hunt said.

“The establishment of PlantTech will ensure that Australian growers continue to receive the quality product they have come to expect from each of our companies.”

Wesfarmers Landmark Managing Director, Mr Richard Goyder said the sale of SGB’s seed operations was a major step in the rationalisation occurring within the Australian grains industry as companies pursued the economies of scale critical to successfully competing with much larger global companies.