Last Updated: October 09, 2015

Weather: Canberra 6°C - 26°C . Shower or two. Possible storm.


Nufarm announces job cuts

Decision: Nufarm hopes to save up to $13 million with the restructure. Picture: Greg Scul

Decision: Nufarm hopes to save up to $13 million with the restructure. Picture: Greg Scullin Source: News Limited

NUFARM will expand its Victorian chemical manufacturing plant but close others in Western Australia and Queensland in a shake-up of its Australian operations.

Nufarm managing director Doug Rathbone announced the changes as part of a restructure which would lower the company’s cost base while focusing on the development of new products and customer service.

The restructure will see 105 jobs lost — or 15 per cent of its workforce — in all areas of the business except product development.

Six of its regional service centres will be closed and properties, which include the WA and Queensland factories, remediated and sold.

The restructure is expected to produce annualised cost savings of $13 million.

Remediation of land was expected to cost between $2 million and $3 million

Nufarm’s dominance in the Australian farm chemical market has been challenged in recent years by cheaper imported generic products, particularly from China.

The company’s share price has fallen from highs of about $17 in early 2008 to today’s opening price of $3.90.

“Australia is a very competitive market with relatively low barriers to entry,” Mr Rathbone said. “As we have seen in recent years, it is also a market which experiences significant swings in seasonal conditions and demand patterns.

“We need to ensure we have a flexible business that can more readily respond to variations in demand, while meeting our commitment to supply high quality products that provide cost-effective solutions to Australian growers.”

The company said challenging seasonal conditions — with big impacts on sales volumes and margins — had exposed a cost base that was high and relatively inflexible, coupled with inefficiencies in the supply chain and logistics in getting product to customers.

Nufarm had engaged consultants to challenge its thinking but had also sought feedback from its retail sales network and farmers.

The company said it had found strong support for its Nufarm and Crop Care farm chemical brands but there was price pressure from competitors’ generic products.

There was also concerns from its customers relating to the quality of imported products.

Nufarm said the restructure would see a reduction in management layers, speeding up decision making and being more responsive to customers’ needs.

Have your say

Skip to:
Read comments
Add comments

Add your comment on this story

Comments Form

1200 characters left

Your details
Post Options

Our Privacy Policy includes important information about our collection, use and disclosure of your personal information (including to provide you with targeted advertising based on your online activities). It explains that if you do not provide us with information we have requested from you, we may not be able to provide you with the goods and services you require. It also explains how you can access or seek correction of your personal information, how you can complain about a breach of the Australian Privacy Principles and how we will deal with a complaint of that nature.

Comments on this story

  • RonaldR of Perth Posted at 2:01 PM March 18, 2014

    Since Abbott & Hockey took control of our country what we see daily is loss of jobs in the 100's and 1000's and they give lame speeches with no solutions . Then to rub salt in the wounds of all those Australians loosing their income they open the flood gates for employers to bring in cheap labor on the 457 Visa's instead of employing Australians. Quote Jack Lang “ the one God-given ,inalienable right of man is the right to live, If man & women are denied the right to work ,they still retain the right to Live. The Government that fails to realize that has forfeited the right to exist “

Push in SA for GM approval

GM canola Grower Rokewood

SOUTH Australian grain growers will petition the state government for the right to grow genetically modified crops.

Mutton hit by oversupply

Mutton hit by oversupply

COMMENT: THE mutton market appears to be feeling the affects of the unusual hot spring weather and a build-up in supply.

Exporters face tough rivals

A Russian man shovels grain at a farm in Vasyurinskoe on August 13, 2010. The US government cut its forecasts for global whea...

AUSTRALIAN farmers may face tough export competition from the Black Sea region and European Union.

New berry flavour of the month

New berry flavour of the month

LISMORE grower Ridley Bell plans to break ground with a new blueberry variety called Eureka.

Dairy extension change

Tasmanian dairy conference

MORE Victorian dairy industry extension services will be delivered through Dairy Australia from July 1 next year.

Cruel cut

Andrew Weidemann, Rupanyup

SCORCHING temperatures and hot winds have devastated crops just weeks out from harvest.

Saints in heaven

Goulburn Valley FL, Grand Final, Benalla V Kyabram

BENALLA ended a four-decade premiership drought by defeating Kyabram in the Goulburn Valley Football League grand final.

Early bud burst again

Glenmaggie Wines

DRY conditions and warm weather have led to another early bud burst in parts of Victoria.

Cut-price loader ticks boxes

Cut-price loader ticks boxes

THE Korean-made Branson range has expanded in Australia with the release of the F42R 40hp compact tractor.

Place of shed experiences

Boort Mens' Shed

A DOG-EARED copy of The Weekly Times sits on the table in the middle of the Boort men’s shed.

A ’devastating’ turnaround

Baker Seed Co Rutherglen

THE heatwave of the past few days will strip the cream off crops in North East Victoria.