Massive investment in EP fert sector (2024)

The South Australian fertiliser sector will see one of its biggest local investments in 35 years with the news a Balaklava-based fertiliser business is planning a multi-million dollar distribution centre for the Eyre Peninsula.

Agfert Fertilizers will construct the new facility at Cowell, on the eastern side of the EP, where it will import fertiliser from the nearby Whyalla port for distribution among farmers across the EP.

Tim Gurney, Agfert's new chief officer of business growth and relations said the expectation was that the service would be extremely well received by farmers across the EP, who currently have been forced to make time consuming trips across the state to pick up fertiliser such as urea as there was little stored locally.

Mr Gurney said the plan was to stick very close to the tried and true script of the company's original Balaklava facility.

"The EP model is based closely on the Balaklava operation where they import direct from the manufacturer into the Balaklava depot nearly 100kms from port," Mr Gurney said.

"From there we can offer closer convenience to customers, saving them significant time driving through city streets and stop lights to only pick up one load a day."

"It's almost a copy and paste scenario for the Eyre Peninsula, why would you change a business model that's been successful for nearly 50 years?"

"We'll tweak it a bit for our EP farmers, but overall, the methodology is very similar."

He said the business had secured six locally owned resellers with seven stores across the EP to distribute the products to growers.

Farmers across the country have nominated convenient access to product at times of peak needs as one of their key priorities, particularly in recent years where regional shortages have emerged due to delayed shipments.

Andrew Baldock, a farmer at Kimba on the Upper EP, said the project had the scope to have major benefits for farmers in the north of the EP.

"At present we are reliant on Port Lincoln for our fertiliser, Cowell is less than half the distance, so there are some good efficiencies just in terms of cutting time carting," Mr Baldock said.

However, he said there were more than gains in time savings through the construction of the facility.

"By having this facility available we will be able to rethink our strategy regarding storing fertiliser on-farm."

"Being able to store the product there will mean less need for fertiliser storage at home, so we can reallocate the funds to something else, whether that be more grain storage or whatever is needed."

He said having the ability to buy and store fertiliser early would also allow farmers to take a position in the market, rather than be price takers when the product was required.

Derryn Stringer, Agfert procurement and sales manager, said Agfert had managed to leverage the facility at Balaklava to provide the features customers were looking for to help minimise costs and create a secure supply chain when needed.

These included no storage fees, flexible pick-up arrangements and giving farmers ability to pre-pay or buy at the lows and pick up stocks across seasons.

One of the major product offerings at Cowell will be the ability to treat urea with N-Shield, a treatment that can provide strong protection against volatilisation.

The distribution facility is nearly one hectare under-cover, with an 80 metre automated weighbridge and high-capacity loading plant placed centrally within the shed.

Mr Gurney said the supply chain competition provided on the EP would be a boost for growers.

"EP farmers know the benefits of supply chain competition and with Agfert being in control of our purchasing, importation, local stock levels, pricing and distribution, it will give EP growers the confidence and product security they've been looking for."

"With the EP's recent trends of product unavailability heightening risks for growers this new facility will give surety of supply and lower their risks substantially," he said.

Agfert are officially announcing the new EP Supply Chain and Distribution Centre at the EP Field Days next week at site 350.