NUFARM LIMITED — Call Transcript 2006

Aug 2, 2006

COMPANY ANNOUNCEMENT & CONFERENCE CALL ALERT

3 August, 2006

Statement re Brazil and year end results

Nufarm Limited announced today that it expects to report a year end operating profit for the 12 months to end July 2006 approximately in line with its 2005 operating profit (\$121.4 million under AIFRS).

Following a review of business conditions in Brazil and the performance of the company's 49.9% owned Brazilian business. Agripec, Directors believe the full year contribution from Agripec will be in the order of \$5-7 million. This is substantially below the contribution recorded for Agripec in the 2005 financial year (\$26.9m).

Collectively, the balance of the Nufarm business is expected to generate a very solid performance for the year and strong growth in operating profit.

Nufarm Managing Director, Doug Rathbone, said business conditions in Brazil have been extremely challenging over the past 12 months, with the farm sector continuing to suffer from lower export incomes and restricted availability of credit due to the stronger Brazilian currency.

Mr Rathbone said that in addition to lower sales of crop protection products – and lower margins on those sales - the Agripec result will be impacted by additional measures taken to protect Agripec against the risk of non payment.

A longer 'collections' period has resulted in foregone sales as Agripec has opted not to make new sales to distribution customers until outstanding payments have been secured. Discounts have also been provided to a number of distribution customers to ensure Agripec meets targets for the collection of outstanding payments.

"Together with Agripec management, we have determined that certain risk management measures are appropriate in the short term.

"While we continue to see Brazil as a valuable medium to long term growth opportunity for Agripec / Nufarm, appropriate decisions need to be taken to ensure the business remains well placed to take advantage of that opportunity."

Mr Rathbone said while seasonal conditions in many parts of Australia had not been ideal, Nufarm's strong leadership position; extensive product portfolio; and focus on margin improvement should enable the Australian business to generate solid results for the 12 months to the end of July. The remainder of Nufarm's global crop protection operations - in particular the European and North American businesses - are expected to make stronger than anticipated contributions to the full year result, thereby reducing the impact of the lower contribution from Brazil.

Nufarm will report its 2006 full year results on September 29.

$-$ end $-$

Conference call details:
Time:	$11.30$ am (est)
Dial in numbers:		Melbourne: 03 8414 5155 Interstate: 1800 268 165

Further information:

Robert Reis Corporate Affairs
2 (61 3) 9282 1177