GRAINFARMERS HAS bought UAP’s half of the crop input joint venture set up by the two firms six years ago.
But the partners will continue to work together, extending the alliance for the next five years.
A joint statement this week said the acquisition would allow agrochemical specialist UAP, whose management recently bought the firm from Con-Agra, to reinvest in its core business.
Grainfarmers, a leading grain and seed marketing firm, would continue to invest in the alliance.
The joint venture, which sells seed, fertiliser and agrochemicals to farmers, claims a market share of over 15% in the arable sector.
Tim Pollock, Grainfarmers’ managing director, said: “Our alliance achieved seed and fertiliser sales of around £45m in the year to June 2005, and we expect to grow our annual market share to £50m.”
His firm will keep a larger share of the profits after the deal.
UAP agrochemical sales amounted to about £80m in the same period, of which about 10% was generated by the joint venture.
Stephen Derbyshire, UAP’s managing director, said the allowance would continue to maximise returns for farmers.