Kerry Agribusiness is to source the vast bulk of its fertiliser for the immediate future from Grassland Agro, the Irish Farmers Journal has learned.

The novel tie-up between the two businesses, which is the first of its kind for the Irish fertiliser sector, will see Grassland Agro supply close to 100,000t of product to Kerry Agribusiness, which is wholly owned by Kerry Group.

At an average price of €450/t across all products, the deal could be worth in the region of €45m a year.

Liam Woulfe of Grassland Agro confirmed that an agreement had been reached between the fertiliser company and Kerry Agribusiness, but he declined to go into specifics on the deal.

The Irish Farmers Journal understands that Grassland Agro will not sell fertiliser directly to Kerry’s farmers.

It will supply product to the dairy processor, with farmers continuing to purchase fertiliser through the Kerry Agribusiness branch network.

However, Grassland Agro will provide support to Kerry’s suppliers in the area of sustainability and nutrient management.