Ann: GENERAL: NFF: Roundup Distribution

• Release Date: 05/03/13 18:40
• Summary: GENERAL: NFF: Roundup Distribution
• Price Sensitive: No
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NFF
05/03/2013 16:40
GENERAL

REL: 1640 HRS Nufarm Finance (NZ) Limited

GENERAL: NFF: Roundup Distribution

Nufarm Limited announced that it has received notice today from Monsanto that
agreements relating to the exclusive distribution of Roundup branded
glyphosate in Australia and New Zealand are to be terminated.
Nufarm Australia entered into an agreement with Monsanto in 2002 for
exclusive use of Monsanto's Roundup brand and has launched a number of
innovative glyphosate products under that brand, including Roundup Power Max
and, more recently, Roundup Attack.
The agreements include a requirement for Nufarm to pay a distribution fee to
Monsanto on all Nufarm sales of glyphosate into the Australian and New
Zealand markets.
Nufarm's Managing Director, Doug Rathbone, said Nufarm remains committed to
the glyphosate segment and will continue to invest in the development of
innovative glyphosate formulations under Nufarm's brands.
"The glyphosate segment has changed significantly over the past few years,
becoming increasingly competitive and generating substantially less value for
suppliers of that chemistry into the Australian market.
"The brand premium attached to Roundup has consequently been eroded and we
will now focus our ongoing investment in glyphosate on Nufarm's own brands
where we can build long term value on a more secure basis and ensure our cost
competitiveness."
Nufarm currently has an approximate 50% market share of glyphosate sales in
Australia, with some 60% of those sales involving products that are marketed
under the Roundup brand.  Nufarm's Roundup branded glyphosate sales in
Australia and New Zealand in financial year 2012 were approximately $100
million.
The notice states that Nufarm may continue to sell Roundup branded product in
Australia and New Zealand until August 28, 2013.  Given Nufarm's cost
position will improve after the distribution arrangements have ceased and the
company expects to maintain a strong presence in the glyphosate segment,
there is not expected to be a material impact on earnings.

-- end --

Further information: Robert Reis
   [email protected]
   Corporate Affairs
   * (61 3) 9282 1177
End CA:00233802 For:NFF    Type:GENERAL    Time:2013-03-05 16:40:26