NSW Farmers warns the impacts of a new merger between two major farm supply companies must be closely monitored to ensure prices for essential inputs do not skyrocket.
On Thursday the Australian Competition and Consumer Commission (ACCC) approved the acquisition of Delta by Elders, provided Elders divests six Delta stores in Western Australia.
NSW Farmers Vice President Rebecca Reardon said many farmers feared the new merger would reduce competition and drive prices up within the agricultural supplies market.
"We've had a lot of farmers telling us they think this merger will spike prices for critical farm supplies, and could create a monopoly in parts of NSW where Elders and Delta are the only ag suppliers," Mrs Reardon said.
"With input prices and inflation soaring in recent years, having two or three outlets competing for price for the same products has made a real difference when it comes to keeping costs down.
"Now there'll be little chance to shop around, we're really concerned about what this lack of competition will mean for the cost of feeding and clothing the nation."
Mrs Reardon said it was disappointing there was no divestment undertakings in NSW given the concentration of stores in the state, and said it was critical the ACCC monitored how the merger affected farm supply prices in case intervention was necessary.
"Australians need their farmers to feed them, and as farmers we're telling the ACCC they need to protect competition in the farm supply market, otherwise we can see some pretty poor outcomes down the track," Mrs Reardon said.
"Farmers deserve fair prices, be it for agronomy, agency services or ag supplies, and it's important that this merger doesn't put that at risk.
"No doubt the proof will be in the pudding, and how our bills change over the next year or so will say it all."
