Superfert Dongbu in administration

The company services farmers and agents in SA and WA.

Existing contracts have been put on hold and any supply of product owned by the company will be decided following the first meeting of creditors on Monday.

The voluntary administrator, accounting firm Cor Cordis' Dino Travaglini, said it would operate under limited trading in the short-term until the financial position of Superfert Dongbu could be determined.

"We are conducting a full analysis of Superfert Dongbu's financial situation and as such, it's too early to speculate on the future of the company," he said.

"We do apologise to those farmers who are awaiting supplies given this is a critical time of year for agriculture.

"However, given its financial position these orders have had to be put on hold, while we work through the company's issues.

"We are seeking to resolve this as quickly as we can."

Mr Travaglini said the company's 15 staff were being retained while a strategy for the company was formulated.

"There has been interest in the sale of the business as a going concern, and it will be considered as a possibility," he said.

Superfert Dongbu has an annual turnover of about $80 million and was registered in 2011 as a part of a joint venture between Superfert and the Korean Dongbu Group.

It has yet to be confirmed how many SA growers have Superfert Dongbu fertiliser contracts, but growers should note there are two Superfert companies operating in SA.

Superfert Mid North-Eyre Peninsula regional manager Jamie Wilson says it is "business as usual" for Superfert EA in SA.

"Superfert EA has a completely different ABN from Superfert Dongbu in WA and has not gone into voluntary administration," he said.

"I have been assured that this does not affect Superfert EA in SA."

Superfert EA and Superfert Dongbu did not return Stock Journal's calls prior to deadline.

Grain Producers SA chairman Garry Hansen said it was concerning that another fertiliser company had gone into administration at a pivotal time to the cropping industry.