4 July 2007 -- Ballance Agri-Nutrients announced today that it has increased its core fertiliser prices by up to 24 percent.
The company said the increase was a result of the combined effect of soaring international raw material and shipping costs.
Superten has increased by 12% to $218 per tonne, urea by 5% to $595 per tonne, and DAP by 24% to $833.
"As a co-operative, Ballance is committed to providing its shareholder farmers with their nutrients at the lowest sustainable economic cost, and to assisting them to maximise the production benefits from their investment in fertiliser," said Chief Executive Larry Bilodeau.
These soaring prices are being fuelled by the same forces that have recently driven up dairy returns � global economic growth and subsequent demand for agricultural products, and the focus in the United States and Brazil on growing crops to convert into biofuels.
This global demand for fertiliser has seen international phosphate rock prices increase by 50% and sulphur prices double over the past six months. DAP prices are at a global record high, increasing by more than 70% over the same timeframe.
Mr Bilodeau said that the company has also had to increase the price of urea to absorb the higher cost of raw materials for the manufacture of this product as well as the increased costs of importing urea to supplement their local supply.
Prices are being further impacted by the continued increase in global shipping costs as demand for bulk shipping capacity continues to exceed the ship building industry�s ability to supply new vessels.
The strong New Zealand dollar has helped offset these cost increases, however the benefits have been lost when compared to the magnitude of the international price movements.
"Unfortunately in the second half of the year we are anticipating further increases and a weakening of the NZ$ would only further exacerbate these.
"International nutrient raw material costs are now at an all-time historical highs, and the situation is unlikely to ease in the foreseeable future," said Mr Bilodeau.
"More than ever before, farmers need to be conscious of the economic necessity of matching fertiliser use to production gains, and employing every means possible to ensure efficient use of nutrients."
"Farmers should see the price increases as a reason for them to re-consult with our technical field representatives to reassess their nutrient budgets and fertiliser inputs." Listed below are new prices of key products.
