KEY POINTS:
New Zealand's biggest fertiliser co-operative is looking at moving into Queensland, where sales are dominated by Incitec Pivot.
The Ravensdown Fertiliser Co-operative already operates in Western Australia, having taken over the United Farmers Co-operative this year.
A company spokesman, Alan Thomson, said the co-op was talking with the Queensland Canegrowers Organisation.
"We're probably entering a phase now, as we look at alternatives around the east coast of what represents the best opportunity for the existing Australasian 30,000 shareholders of Ravensdown and where the best fits are.
"It would be fair to say there is a lot of water to go under the bridge yet, but discussions are progressing at a good level," said Thomson.
In Western Australia, Ravensdown paid the United co-operative an initial A$6 million in Ravensdown shares, and over four years it will receive A$19.6 million worth of shares.
Ravensdown said sales to United members were expected to start at 220,000 tonnes in the first year with a target to lift this by 10,000 tonnes each year.
United - Western Australia's third-largest player in the fertiliser market with a 15 per cent share behind CSBP and Summit - was forced to explore merger options when it struggled to make a profit after two drought seasons and the price of fertiliser doubled as international demand soared.
- NZPA
