Wednesday, 04 May 2022 08:55

Enough product in stock for autumn - Ballance

Written by  Sudesh Kissun
Farm nutrients manufacturer Ballance says it has enough product in stock for autumn. Farm nutrients manufacturer Ballance says it has enough product in stock for autumn.

Farm nutrient supplier Ballance is managing the knock-on effects of Covid and the Ukraine war to maintain surety of supply for farmers and growers.

The co-operative says it has enough product for autumn and is managing to keep up with demand.

However, Ballance general manager sales Jason Minkhorst says the recent global price increases are on the back of two years of high prices.

"Just as we finally saw fertiliser prices start to drop, the Ukraine invasion has, unfortunately, seen prices rebound," he told Dairy News.

Russia's invasion of Ukraine made a bad situation worse.

"Although we are far from Europe, the impacts of this war are being felt here in New Zealand, particularly as the sanctions have bitten.

"This is in the form of increased costs of fuel and in our case, fertiliser." Minkhorst says Ballance had anticipated this disruption.

:"We have been focused on surety of supply for autumn, ensuring our farmers have the feed required for animals going into winter, particularly as we knew the meat companies would be disrupted by Covid and farmers are left with additional animals on farm as we go into winter."

Russia is the largest exporter of fertiliser in the world and also supplies a significant percentage of Europe's energy needs.

In addition, Belarus' exports of potassium are disrupted because of its support for Russia. Collectively Russia and Belarus account for 40% of global potassium supply.

As the war and sanctions progressed, there was a rise in fertiliser prices, particularly nitrogen and potassium.

Minkhorst points out that global nitrogen prices rose to US$1,000/t and this excludes freight and local distribution costs.

Ballance was not adversely impacted in the short to medium term as it does not source finished or raw materials directly from Russia, Belarus or Ukraine.

"However, we are managing the knock-on, so that we can maintain surety of supply for our farmers and growers.

"Our focus is helping farmers through this autumn, but we are also very aware of the impacts of the cost of fertiliser for the coming spring. We will be watching this closely over winter.

"As a cooperative we have been trying to help buffer our farmers from these global price movements.

"In fact we recently reduced the price of nitrogen specifically to help our farmers with their feed requirements for autumn.

"This is particularly important given that many regions have been very dry, and Southland is now in drough conditions.

"The point of this price drop was to help our farmers and growers set themselves up for winter."

More like this

A defining year ahead!

The coming year is looming as a defining one for New Zealand farming, according to Rabobank agricultural analyst Genevieve Steven.

FAO distributes seed potatoes to Ukrainian rural families

The Food and Agriculture Organization of the United Nations (FAO) has distributed seed potato kits to 17,740 Ukrainian households from across ten of the country’s oblasts (administrative division) so they can plant food in time for the next harvesting season.

Rising up to challenges

Dr Danny Donaghy is professor of dairy systems at Massey University and a specialist in pasture agronomy and physiology.

China lockdowns hit dairy demand

Covid restrictions in China are likely to slightly dampen milk powder imports into that country, according to Stefan Vogel, Rabobank research general manager for Australia and New Zealand.

National

Battle of wearables

It was the battle of the wearables at the recent Lincoln University Demonstration Dairy Farm Focus Day with presentations of…

Who dares wins

In a move that reminded everyone of the SAS motto, 'Who dares wins', Prime Minister Jacinda Ardern, Agriculture Minister Damien…

Machinery & Products

India boosts fert subsidy

India plans to double its budgeted 2021-22 fertiliser subsidies to a record of more than 1.55 trillion rupees (US$20.64 billion)…

Kicking lameness into touch

Lameness in dairy cows can have a significant effect on a businesses' bottom line, with vets suggesting that each case…

Single row concept delivers results

While Controlled Traffic Farming (CTF) has become increasingly popular over the last decade, German company Amazone is looking to take…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Fake and cheap

OPINION: First they demanded plant-based 'milk', now they want it priced cheaper than real milk.

Cannon fodder?

OPINION: The recent high-profile Mycoplasma bovis announcement from the Government in Hamilton featured Prime Minister Jacinda Ardern and Agriculture Minister…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter