Plant nutrition specialist RLF AgTech (ASX: RLF) has nailed down a supply agreement with the subsidiary of leading agribusiness Elders, which will see its crop nutrition products available across Elders’ extensive network of 245 rural stores in Australia.
All up, the company’s distribution network has now ballooned to more than 500 locations across the nation.
Strategic benefits
Management believes the deal with Elders Rural Services Australia marks a pivotal step for RLF’s national expansion efforts.
It broadens RLF’s reach into key agricultural regions and potentially facilitates an accelerated adoption of its high-performance, science-driven products designed to improve yields, sustainability, and profitability.
The partnership could also help to drive revenue growth and enhance RLF’s profile as a leading innovator in crop nutrition.
Separately, it reinforces the company’s objective of advancing sustainable agriculture by equipping farmers with the tools to improve productivity and soil health.
Investing for growth
The collaboration with Elders could also enable RLF to streamline its operations and enhance customer service, whilst facilitating a broader product range.
In turn, RLF has recently expanded its operational team to support the rollout of its products through Elders’ network, as well as other key distribution channels. It has also bolstered its sales and business development team and made targeted investment in training programs and marketing materials.
RLF AgTech acting managing director, Gavin Ball, commented:
“We are incredibly fortunate to have a supply agreement with Elders Australia — a name synonymous with Australian agriculture. This agreement is an important step forward as RLF strengthens its presence in the domestic market and delivers RLF’s crop nutrition solutions to growers across the country.”
Established distribution network
Elders is one of Australia’s longest serving companies with its roots stretching back to 1839.
Today, the group is recognised as a significant supplier of farm input products such as seeds, fertilisers, agricultural chemicals, and general rural merchandise. It also provides professional and technical services for the rural sector through its network of more than 240 agronomists.
In the 2024 financial year, Elders generated more than $3 billion in sales and close to $130 million in underlying operating earnings (EBITDA).
RLF’s collaboration with Elders builds on two other recently executed distribution agreements.
Earlier this month, the company entered a deal with Delta Agribusiness – a leading independent provider of farm inputs, advisory services, and agency solutions across regional Australia – to supply its products across Delta’s network of 108 locations.
In January, RLF also sealed a strategic trading agreement to distribute its products through National Rural Independent’s network of 152 stores.