Fertiliser Ravensdown
28/01/2010: RAVENSDOWN EXPANDS INTO SOIL TESTING & A LOCAL TEAM
Just a year after fertiliser giant Ravensdown put its toe in the fertiliser market on the eastern seaboard, it has already set about its expansion program – launching a new soil test service very much at the behest of local growers. In addition they have consolidated their position in the Queensland and New South Wales market by adding to their local team, based out of Brisbane.
The announcement this week that Ravensdown Fertiliser Australia (RFA) has launched a best management practice compliant soil testing service was well received by cane growers up and down the coast. Ravensdown’s research scientist, Dr Alister Metherell and ARL’s Manager, Michael White have worked closely with Dr Bernard Schroeder of research and extension body, BSES Limited, to ensure the product being launched met the Australian industry’s rigorous best management practice guidelines, and the Queensland Government’s regulatory requirements, especially with the recent introduction of The Great Barrier Reef Protection Amendment Bill 2009 on 1 January 2010.
Cane growers are no strangers to soil sampling - a tool they use to determine input requirements. Crop inputs, including fertiliser which can account for up to a quarter of growers’ yearly spend, are expensive and soil testing is one tool growers can use to determine appropriate nutrients to maximise crop yields cost effectively. Soil testing assists growers to apply the right nutrients at the right time for the lowest cost.
This month, Bruce Keenan joins Ravensdown’s eastern-seaboard team as the Sales and Business Development Manager. Bruce has been charged with developing the Ravensdown Fertiliser Australia business for the sugarcane industry and will facilitate the company’s plans to roll out a locally based sales agronomy team that Ravensdown plans to bring on line in 2010.
Keenan has been spending time with sugarcane growers up and down the coast, bringing with him the hands-on approach for which Ravensdown is becoming known. He intends to continue travelling to the various sugar regions to develop a greater knowledge of the sugar industry and more specifically cane growers’ requirements. Having been ‘born and raised’ on a farm, his passion remains firmly entrenched in all farm systems and the opportunities to improve production. His experience in Western Australia and New Zealand covers a wide range of agricultural experience, which includes sheep shearing, agricultural supplies, managing a sales agronomy team and farm owner.
Ravensdown has confirmed that its soil sampling kits will be available from all local CANEGROWERS offices. The kits will help growers collect samples and take advantage of this comprehensive and price competitive service. The Ravensdown soil testing service undergoes rigorous assessment on an ongoing basis to ensure accuracy, compliance to Australian standards, and to ensure the fast turnaround that the company boasts, is maintained.
According to CANEGROWERS CEO Ian Ballantyne, this is just one prong in the increased benefits under the next growth phase planned by Ravensdown Fertiliser Australia.
“2009 was a good first year for the relationship and considerable benefits flowed to CANEGROWERS members from the moment Ravensdown Fertiliser Australia entered the market,” he said.
Mr Ballantyne said 2010 would see the relationship strengthen with some exciting developments, firstly with the introduction of the soil testing service, the appointment of permanent Queensland management and regionally based agronomic staff, and later in the year, the introduction of AgChem.
Media Comment: Ian Ballantyne CEO 07 3864 6444 or 0418 781 011, Alf Cristaudo Chairman 0418 181 204.
Photos of Bruce Keenan soil testing in Rocky Point: Click on the images below to download 1.5MB jpg images or contact Suzi Moore 07 3864 6431 suzi_moore@canegrowers.com.au for higher resolution images.
Cane grower, Richard Skopp, soil testing on his Rocky Point farm with new QLD & NSW Ravensdown Sales and Business Development Manager, Bruce Keenan. 
Ravensdown has extended their thanks to those many cane growers who have had the foresight and conviction to support the establishment of Ravensdown Fertiliser Australia (RFA)in Queensland and Northern New South Wales. Growers and farmers throughout the region have sought not only more competition but transparency and ownership of an alternative fertiliser supplier.
Having entered the Queensland and Northern NSW fertiliser market in May the team at RFA started despatching fertiliser from Townsville, Mackay and Brisbane during mid-July. The successful establishment of RFA is, to a large extent, due to the support and work of CANEGROWERS management, board and staff locally and state wide. Additionally RFA has received the firm endorsement of Agforce and QDO.
The products supplied by RFA have meet the expectations of cane growers, dairy farmers and cropping farmers alike, and RFA will continue to work hard to ensure we bring the quality fertiliser expected by growers and farmers.
The RFA board met for the first time during July. The board is made up of the CANEGROWERS Chairman Alf Cristaudo, CEO Ian Ballantyne, Ravensdown Chairman Bill McLeod, CEO Rodney Green and CFO Sean Connolly. Board members held a series of meeting with growers to get feedback on the operation of RFA to date and grower’s desires for the future direction of the company.
Growers have been quick to ask about ordering for next year and suggested the following to enhance the RFA offer in the immediate future and in that period before full service facilities are able to be established. Of most interest were requests for consideration of:
• A longer period of despatch
• At least two ordering and despatch periods
• A wider product range
• Alternatives to the full prepayment of fertiliser
The team at RFA is now working to deliver on these suggestions and will have more news in the coming weeks and months. It is clear that many growers would like to be able to plan for further product in early 2010. We hope that timely announcements about each of these (and other developments) will be made well in time for growers to be able to plan ahead and make decisions about fertilser purchases.
Also of note, RFA parent Ravensdown Fertiliser Co-op this week announced it is returning AUD25.4m (NZD32m) to shareholders after making a profit of AUD28.6m (NZD36m) for the year ending 31 May 2009. Each year the rebate, and where applicable, bonus shares approved by the board are paid to shareholders who have taken delivery of fertiliser before May 31st of that financial year.
Fertiliser delivered in Queensland and NSW from the commencement of the mid July operations will qualify for any rebates and bonus shares approved by the RFC board at the close of the 2009-2010 financial year.
Ravensdown returns $25.4m to shareholders after $28.6m profit
Ravensdown Fertiliser Australia Ltd’s parent Ravensdown has announced it will return A$25.4 million (NZ$32m) to shareholders after making a profit of A$28.6 million (NZ$36m) for the year ending 31 May 2009.
“The 2008/09 year was a challenging one characterised by massively high international fertiliser commodity prices and we’re pleased to be able to report to shareholders that we achieved a satisfactory profit,” says Ravensdown Chairman Bill McLeod.
During the year shareholders bought 1.081m tonnes of fertiliser from the co-operative.
“In our first full year of operation in Western Australia we received excellent support from shareholders and this part of the business made a significant contribution to our total profit,” says Mr McLeod.
“In Australia we led prices down to give the earliest possible pricing relief to our Western Australian shareholders.
“In New Zealand we buffered our shareholders from the highest prices by holding prices low for as long as possible and then reducing them quickly to give farmers pricing relief.
“Moves such as this demonstrate the benefits to shareholders of belonging to a fertiliser co-operative. We make decisions with farmers’ best interests in mind whereas a corporate will focus completely on their bottom line.
“As well as giving pricing relief upfront we will also return 40% of our profit to shareholders through a rebate of A$12 (NZ$15.10) per tonne and as well as issuing 12 bonus shares. We issue bonus shares to ensure we reflect to our shareholders the growth in the equity of our company.”
In addition, Western Australian shareholders who have purchased fertiliser from Ravensdown will also receive A$25 in shares through the Western Australia Shareholder Incentive Scheme rebates (ASIS).
Looking forward
Ravensdown’s Queensland business started operating in this new financial year and Mr McLeod says sales are strong.
“We led pricing down significantly in Queensland providing major benefits for cane growers and farmers who joined Ravensdown in our first year of operation. Many leading Queensland cane growers gave us at least part of their business,” he said.
“There is strong commitment to the development of the co-operative model in Queensland and we are committed to ensuring we can continue to exceed price, quality and service expectations.”
Mr McLeod assures shareholders Ravensdown will continue to work for them and implement cost efficiencies so their co-operative remains strong, as well as doing whatever it can to ensure farmers’ businesses remain productive.
Ravensdown fertiliser delivered onfarm
Fertiliser is being distributed to grower shareholders of Ravensdown from the ports of Townsville, Mackay and Brisbane.
CANEGROWERS Deputy Chief Executive Officer Ron Mullins said the distribution would continue until the end of August.
“Very favourable comments are being received from growers who have received and applied the Ravensdown fertiliser products,” he said.
Mr Mullins said some growers had reported they would increase their future fertiliser orders to Ravensdown.
Ravensdown representatives were on the ground at each port and in regional locations to coordinate the deliveries and source information to be used in developing a suitable model for the future.
All growers who purchased fertiliser from Ravensdown had the opportunity to take up shareholding of the newly formed company.
The inaugural meeting of Ravensdown Fertiliser Australia was due to be held on 24 July in Cairns.
CANEGROWERS Chairman Alf Cristaudo, CEO Ian Ballantyne and Mr Mullins were due to attend the meeting. Mr Cristaudo and Mr Ballantyne are newly appointed Directors of the company.
Ravensdown’s New Zealand Directors were scheduled to meet with a number of CANEGROWERS Directors and new grower shareholders while inspecting harvesting and planting prior to the RFA Board meeting.
The meeting was expected to look into how ordering, delivery and storage would be rolled out in the future.
RAVENSDOWN ARCHIVE:
- First meeting of Ravendsown Fertiliser Australia: The first ships will have barely made the shore, as the first meeting of Ravensdown Fertiliser Australia is convened. With growers keen to see what next year's model will look like, the first meeting will start to look into how ordering, delivery and storage will be rolled out in 2010. A dozen Ravensdown representatives are visiting regional Queensland locations at the moment to help source information which can be used in developing a suitable model.
- Ravensdown Prospectus drive successful:
CANEGROWERS has thanked the many thousands of cane growers who stepped up to the plate and returned their signed Ravensdown shareholding forms, in a rush campaign to ensure cane growers became part of Ravensdown before the end of the financial year. These growers will now be able to enjoy the rebates and shareholding scheme offered by Ravendown Fertiliser Australia.
Ravensdown to proceed: fertiliser competition greenlit
Cane growers resoundingly welcomed news that New Zealand based fertiliser co-operative, Ravensdown, had confirmed that it would proceed with the highly anticipated fertiliser importation program on the eastern seaboard.
Ravensdown is proceeding with 2009 deliveries, following a successful campaign to attract growers’ commitment to challenge the dominance of current corporate suppliers
“This commitment is the first and most difficult step on the path to establish a permanent, price competitive, grower owned operation on the eastern seaboard,” said CANEGROWERS CEO, Ian Ballantyne. CANEGROWERS has been the key agitator for increased competition and has led the charge to attract the new player to the market.
“It has been a challenging process in that we have sought advance payment and have only been able to offer limited options in the introductory phase,” said Mr Ballantyne. “And all at a time when growers are still reeling from last years prices and lack of cash flow.”
Ballantyne says growers have rallied, dug deep and clearly recognised the future benefits that will come with grower ownership, pricing transparency, competitive prices and a healthy rebates program.
“By supporting the Ravensdown venture, farmers across Queensland and Northern New South Wales have vowed not to continue to be at the bottom of the food chain when it comes to fertiliser prices,” he said.
While 2008 saw fertiliser prices spiral upward, there was little confidence that all increases were directly due to international movement. Limited competition and absence of price transparency made growers pawns in an industry that returned record profits in Australia in that year.
“The CANEGROWERS – Ravensdown relationship has been built on a robust business model which will allow growers to benefit directly from participation in a farmer owned consortium which will have a presence in NZ, WA, Queensland and NSW,” says Mr Ballantyne. “The program involves a six year development plan which will be accelerated to meet demand and will involve a ‘full service’ operation.”
The importation program for 2009 is planned to operate through the ports of Townsville, Mackay and Brisbane with deliveries planned to occur from July.
NEW FERTILISER PLAYER ASSESSING THE MARKET
This major deal was aimed at changing the face of fertiliser supply on Australia’s eastern seaboard.
Ravensdown is a “ground-up” group which has 30 plus years in the New Zealand fertiliser game and currently boasts 30,000 cooperative shareholders and annual sales of 1.4 million tonnes of fertiliser products. In February 2008 it put a toe in the Australian fertiliser market, merging with Western Australian fertiliser cooperative, United Farmers Cooperative of Western Australia.
Peak sugarcane group, CANEGROWERS, who had been actively scouring the world market for fertiliser options for years on end, came to learn about the Ravensdown Co-operative about the time when the group formalised its arrangements in the west. CANEGROWERS, who has been working with Ravensdown on entry to the eastern seaboard for some 12 months now, believes that an attractive deal will be in the wings for the 2010 season.
CANEGROWERS was the key agitator in attracting Ravensdown to the eastern seaboard, in a move they believe is already starting to bring sustainable competition to the Queensland market. They were immediately attracted by the farmer owned cooperative model which delivers proven price transparency. Ravensdown’s model includes a rebate system, based on the successful and well supported rebate system Ravensdown’s current 30,000 plus shareholders have access to in New Zealand and Western Australia.
“As this arrangement tracks forward, we will need our Member’s commitment that they will acquire a substantial part of their 2010 fertiliser requirements through the cooperative’s arrangement to ensure its success,” stressed Mr Ballantyne, who has been at the heart of negotiations to get the arrangement up and running. “Furthermore we will need to build on that commitment in succeeding years.”
CANEGROWERS, AgForce and Queensland Dairyfarmers Organisation have all committed to support Ravensdown’s entry to the east coast fertiliser market, which they all agree has been suffering lack of genuine competition for far too long. At this stage it is slated that 2010 will build on the basic operating structure implemented in 2009 - as part of a business plan aimed at delivering long term, full service facilities to farmers throughout the State.
Over the past year CANEGROWERS has worked with Ravensdown on a strategy which they believe would be an attractive option for growers if they were able to take a stake in the company. “We have gone for a scheme which gives growers the ability to become directly involved in the business rather than a face-less customer on a balance sheet. Growers are part of and benefit from any profits as the business entity develops, rather than the current scenario where profits are sucked up by large corporate entities.”
CANEGROWERS believes the interest by Ravensdown in the east-coast fertiliser market is timely given the unprecedented escalation in fertiliser prices that growers have borne over many years.
For more information on the Ravensdown initative, contact:
Deputy CEO, Ron Mullins
BACKGROUND INFORMATION
- CANEGROWERS has for a number of years sought to introduce competition in the fertiliser market place through the importation of Urea. While this strategy was effective in the year of importation, it had no permanent impact on the dominance and non-competitive environment of the current market.
- In the first year of operation Ravensdown is supplying a number of fertiliser products, initially on a pre-paid shipment basis through three ports direct to farms. The proposal is was subject to achieving a minimum level of support. It is intended that the New Zealand fertiliser giant will progressively establish a permanent, full service presence in the Queensland market, as it did in Western Australia when it acquired the United Farmers Fertiliser Cooperative in February 2008.
- Click on the following link to visit the Ravensdown website http://www.ravensdown.co.nz/
For more information on the Ravensdown initative, contact Deputy CEO, Ron Mullins