Business Description:
Nufarm Limited (NUF) operates as manufacture and supplier of agricultural chemicals used by farmers to protect crops from damage caused by weeds, pests and disease. NUF has production and marketing operations throughout the world and sells products worldwide. The major markets include Australasia, Europe, North America and South America. NUF is also a breeder and marketer of high quality seeds with a focus on corn, sunflower and canola.

Strategy Analysis:
Focus is on patent-expired product, using superior formulation and marketing nous to innovate and differentiate product. NUF is increasing sales of non-glyphosate crop protection products and seed technology where margins are higher. In 2007 NUF made a small investment in glyphosate-manufacturing capacity in China to secure supply in an increasingly tight market. Over-supply has since developed. In 2010 Sumitomo acquired 20% of NUF. The two companies will complement one another´s product portfolios and distribution reach. Nufarm reported a net loss of $49.85m for the year ended 31 July 2011. Material items amounted to a net loss of $148.0m and included a non-cash impairment charge of $70.0m on the carrying value of the company's Brazilian assets. Excluding the impact of material items, the company reported an underlying net operating profit of $98.3m. Revenues from ordinary activities were $2.08bn, down 4% from last year. Basic and Diluted EPS was (23.7) cents compared to (15.0) cents last year. Net operating cash flow was $154.4m compared to $194.61m last year. No dividend was declared. Looking ahead, the company will continue to focus on diversification of its product portfolio and growth into higher value market segments in the 2012 financial year.