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Bushfire rebuild to recoup sales: Elders

Steven Deare
Elders expects to lose farm supplies sales and livestock commissions due to Australia's bushfires

Elders shares are on the rise after the firm announced any hit from bushfire damage could be offset when farmers begin replenishing supplies, rebuilding fences, and restocking animals.

The company said on Thursday while it was too early to assess the full impact of the fires, which are still burning in many areas of Australia, it expects livestock agency commissions and farm supplies to be negatively impacted.

"However, we expect this will be offset by increased demand for farm supplies including fencing, and the need for restocking once fires ease and the rebuild effort commences," the company told the ASX.

Shares in the company shot up in the wake of the announcement and were 2.3 per cent higher at $6.23 at 1424 AEDT.

Elders said trading in the first quarter of FY20 was in line with expectations, and the company was comfortable with market consensus for the full year trading result.

The company said it would make financial and in-kind contributions to a range of charitable organisations focused on the bushfire rebuild effort.