Yes, Magnolia Stellata needs ericaceous compost, but at the same time, no, it does not. The flowering plant in question prefers a slightly acidic to neutral pH level even though proper drainage and lighting let it survive in a variety of soils, including heavy clay. It therefore will have need of the acidic-loving, lime-hating compost in less desirable environments (where an ericaceous compost fertilizer helps), such as slightly alkaline (sweet) soils.
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