Fertiliser co-ops get in the Christmas spirit

New Zealand’s largest fertiliser co-operatives gifted farmers an early Christmas present this week by significantly dropping phosphate prices.

“The announcement will certainly bring a smile to the face of many farmers this festive season,” says Bruce Wills, Federated Farmers Meat & Fibre spokesperson.

“I congratulate both Ravensdown and Ballance Agri-Nutrients for seizing the opportunity to drop the price of manufactured phosphate products.

“At a time when farmers face more on-farm costs than we know what to do with, news like this is a rare, yet satisfying, occurrence.

“Farmers should never underestimate the importance of regular fertiliser application, so it was concerning to hear many have gone without it for too long.

“With this week’s price reduction, it is now far more affordable to apply fertiliser to pasture this summer. Considering the price of super phosphate has fallen by 20 percent, or about $80, to $311 a tonne, it should be within the range of many farmers’ budgets.

“For meat and fibre producers in particular this is excellent news, especially considering beef and lamb prices are likely to be down by about 20 percent this season.

“According to Ballance chief executive, Larry Bilodeau, other fertiliser price movements include serpentine super, down 22.3 percent to $285 a tonne and sulphur gain, down 21.5 percent to $303 a tonne.

“The price drop is accompanied by a warning to ‘make hay while the sun shines’ because it might not last. While the cost of phosphate rock has dropped worldwide, the international fertiliser market is prone to the same volatility seen over the past few years.

“Evidence of that volatility can be found in the fact phosphate rock still costs double what it did three years ago.

“The key is to stock up while you can in order to prevent a further decline in pasture cover this summer. By passing cuts to international fertiliser prices on to their domestic clients, Ravensdown and Ballance have both signalled their intention to help and protect our pastoral sector.

“Because after all, pastoral agriculture accounts for a massive 47 percent of our exports and 12.1 percent of New Zealand’s GDP,” Mr Wills concluded.