![Yara Nipro's Boundary Bend plant in northern Victoria. Yara Nipro's Boundary Bend plant in northern Victoria.](/images/transform/v1/crop/frm/32XghFRykTWK8psrWNhdBMC/688a3ab1-d5d2-4a0a-9fa3-50922786784a.jpg/r169_122_832_506_w1200_h678_fmax.jpg)
Incitec Pivot's fertiliser business is to spend about $20 million buying the Australian Nipro liquid fertiliser assets of Norwegian crop nutrition and chemical giant, Yara International.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
Yara Nipro has operations at Moree and Whitton in northern and southern NSW and Boundary Bend in northern Victoria.
The deal will help Incitec Pivot Fertilisers bulk up its operations and market position before becoming a standalone business next year, if a separation from Incitec Pivot Limited's explosives business is approved by shareholders.
Yara Australia said it would continue developing and distributing dry application fertiliser products in Australia and lines for fertigation and foliar micronutrients markets.
The company had opted to sell after a recent careful review of its local operations decided the liquid fertiliser business no longer fitted its growth strategy.
RELATED READING
Yara initially bought into the Nipro business in 2008, acquiring full ownership in 2011 and subsequently developing it as a leading liquid fertiliser operation.
"This transaction does not affect the other parts of our business operations in Australia," said Africa and Asia executive vice president, Fernanda Lopes Larsen.
"Yara Australia will refocus on its core business development activities and transformation efforts to advance farming towards a more sustainable climate-positive food future.
"The Pilbara plant will continue in its operations and focus on our upcoming project in renewable hydrogen."
Last year the federal government made a $42.5 million grant to Yara Pilbara and renewable energy company, Engie Australia, to assist the construction of an industrial-scale renewable hydrogen production operation.
Renewable hydrogen is produced through the electrolysis of water and nitrogen drawn from air using renewable energy sources, which in turn, is used to make 'green' ammonia to produce urea.
Increased options
Incitec managing director, Jeanne Johns, said her company's investment provided excellent liquid fertiliser options and enhanced security of supply for farmers in eastern Australia.
The acquisition, still to be approved by the Australian Competition and Consumer Commission, would complement IPF's broader business.
She said liquid fertilisers offered unrivalled flexibility for farmers when planning their input programs.
They could be applied in any seasonal conditions, wet or dry, and gave farmers a convenient option for storing product on farm without the risk of deterioration, also reducing the need for manual handling.
We are excited to add the products and expertise of Yara Nipro to our IPF team, and remain committed to supporting manufacturing in regional areas
- Jeanne Johns, Incitec Pivot
"They also allow for custom and precision application of nutrients, leading to more cost effective and sustainable plant nutrition solutions," Ms Johns said.
"Adapting to changing conditions is a way of life for Australian farmers, so the flexibility and options around when, how and in what combination liquid fertilisers can be used is a real draw card for producers and agronomists
"We are excited to add the products and expertise of Yara Nipro to our IPF team, and remain committed to supporting manufacturing in regional areas."
Easy Liquids
IPF would continue investing in its Easy Liquids product range as farmers and agronomists increasingly looked to capitalise on the significant productivity and sustainability benefits delivered by liquid fertilisers.
The acquisition was expected to be earnings per share accretive in its first year with returns likely to be enhanced as both liquid fertiliser businesses combined their operations.
Ms Johns said the Yara Nipro deal was entirely in line with plans to expand the business and seize opportunities that will see it thrive following the proposed separation.
As Australia's largest onshore manufacturer of plant nutrition products, IPF intended to play an important role in the agriculture industry's target of being a $100 billion industry by 2030.
IPF's liquid fertiliser business, together with the soil testing and analysis capabilities of its Nutrient Advantage Laboratory and significant investment in the ARC Research Hub for Smart Fertilisers supported the federal government's national soil strategy.
Start the day with all the big news in agriculture! Sign up below to receive our daily Farmonline newsletter.