fertiliser supplies dry up

"Do not hope that either Obama, nor Osama will spoil our party"as things are looking better and better.


Peter Hemphill
January 25, 2010
AUSTRALIAN grain growers are having difficulty ordering supplies of fertiliser.

Stocks of ammonium phosphate fertilisers have virtually run out at a time when growers are seeking to lock into relatively low prices in readiness for this year's sowing season.

Growers seeking supplies of fertiliser are reporting difficulties in getting price quotes.

The NSW Farmers Association grains committee chairman, Mark Hoskinson, said growers were being told there was no fertiliser in Australia.

"The last shipment (to Australia) was sold before it even arrived," Mr Hoskinson said.

SQP Co-operative executive officer Michael Porter said the co-operative had managed to buy 2000 tonnes of fertiliser for its members, but the deliveries had tight conditions attached and these did not suit all farmers.

Mr Porter said it was extremely difficult to get a price quoted due to "almost nil stocks".

He said farmers were considering their fertiliser purchases earlier than normal this year as they feared prices would rise in autumn.

"Farmers don't want to be caught in a rising market," he said.

Mr Porter said the co-operative was able to source ammonium phosphate fertiliser for $510/tonne before Christmas, but another parcel bought last week was priced at $620/tonne.

"We expect it might sit between $700/tonne and $800/tonne (during the autumn)," he said. "There is a lot of inquiry for fertiliser at the moment.

"They've had low grain prices and now want low-priced inputs."

A fertiliser industry source said fertiliser companies were unlikely to quote prices when it was unclear what it would cost to bring fertiliser into Australia.

He said world fertiliser prices had bottomed and it was now a "feeding frenzy" for buyers internationally.

Fertiliser suppliers in Australia were no longer carrying a large inventories of stock due to the high costs, he said.

"We now marry up the time when we import to when farmers want to buy," he said.

"Normally, we are shipping fertiliser to Australia from February through to March and April.

"With the cost of managing an inventory, it comes down to timing (of arrivals of fertiliser).

"We set a budget, ship against that budget and sell against that budget."