Booming revenue for SA agriculture giant despite fuel crisis
Elevated fuel prices remain a challenge for one South Australian agriculture giant but its success continues to grow on the back of a $475 million business purchase.
The impact of elevated diesel and fertiliser prices failed to make much of a dent in the growing success of South Australian agriculture company Elders, which today unveiled a nearly $40 million half-year profit.
But the rising costs of both diesel and fertiliser caused by war in the Middle East were “creating challenges” for the industry, according to an ASX announcement on Monday morning from the SA-based company that employs more than 3000 people nationally.
With just one month of the reporting period exposed to the closure of the Strait of Hormuz – where much of the world’s oil and fertiliser sources must traverse – the company was able to weather the storm.
Elders CEO Mark Allison said the international events were problematic for agricultural supply chains in the first half.
“[However], Elders’ strong supply relationships, combined with an adept agronomy network for timely advice to growers, has allowed us to manage demand and ensure growers are equipped for the season ahead,” Allison said.
You might like
Diesel prices remain a risk to Elders’ cost base in the second half, he said, “although current prices have eased from the highs experienced in March”.
And the company was “well placed” to manage the disruption of fertiliser supplies thanks to its diversity of suppliers.
Elders – one of South Australia’s top companies and a major supplier of agricultural products and services like insurance, real estate and AgTech – also saw its revenue boom by 32 per cent to $1.8 billion in the six months to March 31.
And shareholders will enjoy an interim dividend of 18 cents per share following the “strong first half result” that the company said was driven by improved seasonal conditions and earnings from its new subsidiary Delta Agribusiness, acquired last year for $475 million.
Stay informed, daily
“The first half of FY26 has been eventful for Elders, with Delta Agribusiness welcomed into the Elders Group and seasonal improvements driving optimism for the winter crop,” Allison said.
He said a new corporate structure for Elders was “reaping benefits”, while management had set the company up for a “solid second half”.
The purchase of agriculture advisors Delta Agribusiness in November 2025 was positive for the company, with the new subsidiary generating $10.4 million of earnings in its first five months under Elders’ ownership. It was expected that the benefits of the acquisition would be fully realised over the coming three years.
The results follow the company’s announcement that it had sold the Killara Feedlot in New South Wales for $196 million to Australian Meat Group. The sale of that business remains subject to Foreign Investment Review Board and Australian Competition and Consumer Commission approval. It was expected that the deal would go through in the second half.
And Elders is investing in the technology that underpins the company, today saying “new tools such as AI agents” would be “transformational” for the firm.
The results come ahead of Allison’s imminent departure from Elders.
An executive at New Zealand dairy giant Fonterra Group – with brands like Bega, Mainland and Western Star – will take the top role at South Australia’s leading agribusiness Elders, succeeding Allison, who has been at the company’s helm for 12 years.
René Dedoncker is taking on the Elders CEO position from October 1 after a global search. Allison will continue to lead the company in the interim.
Shares in Elders were down 25.56 per cent in early trade today.
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
