Forum Archive Index - January 2001

["Warner Lamb" <cloud9@i4free.co.nz>]

I think its ok to debate the political issues facing Nufarm on sharechat as
long as it comes back to the effects it will have on the company and
shareprice. Dicussing the political implications of farm chemicals on NUF is
very real as the latest posts show. It seems NUF are aware of this too.
Remember the announcement back in September. McEwens comments were "Nufarm
to develop herbicides. Nufarm (NUF) said it had secured an exclusive
world-wide license to a potential new class of natural herbicides which
target nine of the worlds ten worst weeds. It has entered into an agreement
with James Cook University and the Australian Institute of Marine Science,
which are collaborating on a research project to isolate and develop the new
herbicides. This sounds very intriging and Nufarm is one of the few listed
companies that offer exposure to the exciting and potentially lucrative
world of biotechnology. this deal which involves an investment by NUF of $2m
in return for the rights to commercialise any findings, puts the company in
a higher risk category but it appears to have the skills to deliver on its
promise.

My personal view is probably swayed by my Naturopath partner but I thought
the following was worth posting regards NUF.
"The Rise of NPK Fertilizer"
Soil depletion continues to play an important role in the unfolding history
of the family farm in the United States. Traditional farming methods have
been abandoned in favour of intensive use of chemical fertilizers in the
last thirty years. NPK fertilizer- named from the chemical symbols for
nitrogen, phosphorus and potassium- has largely replaced manures, organic
plant material and ground up animal bones as fertilizer on commercial farms.
Of these the primary nutrients nitrogen, phosphorus and potassium are most
responsible for the growth, size and productivity of agricultural crops, and
thus they are the primary elements of modern fertilizers like NPK. The
deficiency of a few nutrients- sulpur and iron, for example will cause
discolouration of plants, affecting their marketability. The other elements
are less crucial to productivity or appearance, although they are extremely
important to the nutritional value of the plants to humans. If the secondary
nutrients or trace elements become so depleted that it affects the
productivity or appearance of a crop, these nutrients may be added to the
soil. For instance, iron is often added to fertilizers for commercial potato
crops, which rapidly deplete the soil of the iron essential to the growth
and appearance of the potato. The US Dept of Agriculture assists farmers in
determining whether additional nutrients need to be added to the soil to
support plant growth, productivity and appearance. The nutritional value of
the food is not considered in such analysis. Plants remove all these
nutrients from the soil, but contemporary farmers add only three or four
minerals back in. Phosphorus and Potassium have declined the least in foods
since 1963. This is because these two minerals are standard ingredients in
modern fertilizers. NPK fertilizer was developed in the 1830s before we
understood the mineral requirements of either plants or humans. We are using
an outdated technology, despite what modern scientific knowledge has taught
us about the nutritional value of minerals. The effect of mineral
fertilizers is more complex than simple mineral loss. The addition of
chemical nitrogen depletes both the vitamin C and the iron content of plants
that grow from the fertilized soil. In addition, the potassium in NPK
fertilizer is added in the form of potassium chloride, which means a ton of
chloride is added along with every ton of potassium. The high levels of
potassium inhibit plant absorption of magnesium. Chloride leaches the soil
of magnesium, zinc and calcium. Potassium chloride also alters the mineral
balance so that selenium becomes bound in the soil and cannot be absorbed by
plants.

So while I agree with Mark about the commercial realities of modern food
production, I think this will be unsustainable into the future. Nufarm are
obviously aware of this and current trends (hence diversity into natural
herbicides). I believe that while the current movement towards chemical free
production remains "niche" it has certainly gained momentum, esp in Europe.
Every great shift starts from small beginnings. Beer to Wine has been one
great shift over the last decade. I think there is definately a greater
awareness than ever before. NUF will adapt just as LNN has done, because the
change does not happen overnight.

R
Warner


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