The South Australian company blames weaknesses in the prices of cattle and sheep as well as other issues in the agricultural sector for its estimated $15 million reduction in earnings for the last financial year.

Elders, which ranked 7th in last year’s South Australian Business Index, says underlying earnings are now expected to be between $165 million and $175 million, down from previous guidance of $180-$200 million.

In addition to the weak prices for sheep and cattle, Elders says its review of August trading indicates lower than forecast sales of ‘Rural Products’ in recent weeks, and greater than forecast pressure on those products’ gross margins – especially in crop protection products.

“Elders is experiencing cautious customer sentiment in light of uncertain seasonal conditions in some farming regions, compared to forecast assumptions,” the company said.

“This uncertainty is now supported by the Bureau of Meteorology’s long-range forecast for September to November which predicts a heightened probability of warmer and drier than average conditions in Eastern and Western parts of Australia and risk of an El Nino declaration.”

The update led to an early-trade sale frenzy from shareholders exiting their positions in the agribusiness. Shares in the company are trading down 11.59 per cent at the time of writing to $6.30 per share.

This means the firm’s value has dipped below $1 billion for the first time this financial year – with shares trading at about half of what the company experienced at its recent peak of $14.39 in April 2022.