Sunday, 14 February 2016 15:55

Fert price cuts means more cash in hand sooner

Written by 
Fertiliser prices are tumbling due to weak demand and over supply. Fertiliser prices are tumbling due to weak demand and over supply.

Global fertiliser prices are slumping – good news for cash-strapped farmers.

Both the big fertiliser co-ops have cut prices of key fertiliser inputs from January 31.

Ballance and Ravensdown have cut urea prices by $50 to $525/tonne, DAP down $25 per tonne, sulphate of ammonia by $15 and potash by $10; the changes will flow through to product blends.

Ballance chief executive Mark Wynne says the move follows a global slump in fertiliser prices, driven by strong supply and soft demand.

"There's plenty of supply in the market at present, with extra production coming on stream and China switching from being an internal consumer of nutrients to an exporter. On the demand side, Brazil and India are both suffering from weakening currencies therefore lowering their fertiliser requirements."

The co-op has been supporting farmers with cash when it counts throughout the year – paying out rebates early, holding urea prices through spring and cutting prices in December.

"Our foreign exchange approach has helped us to offset the weaker New Zealand dollar. In a tough year like this, these price reductions will be good news for farmers and growers."

With recent rains in many regions there is a good opportunity for farmers to take advantage of the reduced prices and apply fertiliser now for feed production ahead of autumn.

Wynne says the price moves will likely flow through to a lower rebate payment than in recent years. "But we're confident we've done the right thing. Our aim is to consistently deliver our farmers and growers a strong return on their investment in our co-operative."

Ravensdown chief executive Greg Campbell says the price drops will be welcome news for customers.

"For a large dairy farmer in the grip of a payout downturn or a sheep and beef farmer dealing with drought or weaker returns, these price differences could mean thousands of dollars staying in their bank account. This is far more useful to our shareholders at this time than a large rebate cheque later in the year.

"We've been told consistently by our customers that they would prefer competitive pricing, money in their pocket, all-year value and a sensible annual rebate.

"Farmers are resilient and adaptable people, but it's not just up to them to manage their way through these tough times. We all play our part in the rural sector, challenging the status quo and asking how things can be done better," says Campbell.

 

Priceisright

Urea price down $50 to $525/tonne

DAP down $25/t

Ammonium sulphate down $15/t

Potash down $10/t.

More like this

Treat milk area like a kitchen

Strict hygiene standards on dairy farms will be an important part of long-term export market protection, say award-winning Waikato farmers Adrian and Pauline Ball.

Eyes open to different ways of farm ownership

Farmer Jane Smith was “blown away” by the group dynamic and drive when she and husband Blair hosted the North Otago-based Growth and Development in Farming Action Group at Newhaven Farms in Oamaru.

New chair for Ballance

Former Fonterra Shareholder Council chairman Duncan Coull has been elected as the new chair for Fertiliser co-operative Ballance Agri-Nutrients.

Treat milk area like a kitchen

Strict hygiene standards on dairy farms will be an important part of long-term export market protection, say award-winning Waikato farmers Adrian and Pauline Ball.

A rock to both the NZ and Moroccan economies

New Zealand farmers probably do not realise the contribution they are making to the economic and community life of people in Southern Morocco, says Hajbouha Zoubeir, president, Phosboucraa Foundation.

Featured

ANZCO makes a $30m profit

Meat company ANZCO Foods recorded its best-ever revenue of $1.7b and a net profit before tax of $30.6m for the year ended 31 December 2019.

 

M. bovis – we’re making headway

Ministry for Primary Industries chief science adviser, Dr John Roche on the indications New Zealand is winning the fight against Mycoplasma bovis.

Delays ruled out on water reforms

Delaying the introduction of new water reforms was not an option according to the two cabinet Ministers directly involved – Environment Minister David Parker and Agriculture Minister Damien O’Connor.

$700m for freshwater clean up

The Government has announced a $700 million fund to support the primary sector and other groups in meeting new clean water standards.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Effluent power

Finnish dairy company Valio is on a mission to reduce milk’s carbon footprint to zero by 2035.

What’s in a name?

The man who coined the term ‘Gypsy Day’ is slightly miffed that a term he introduced to New Zealand’s farming…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter