Lowest urea price since 2007

MEDIA RELEASE

29 January 2016

Lowest urea price since 2007

Farmers stand to benefit from a $50 per tonne saving for urea from 1st February, when Ravensdown will drop its prices.

Chief Executive Greg Campbell says he is pleased that Ravensdown is again leading on a price reduction for farmers who are facing increasing costs in many aspects of their business whilst their returns are under pressure.

“We said it not long ago, with our recent superphosphate cap,” Greg says, “that we are about delivering all-year value to our shareholders, and we’re demonstrating it again with urea and other products.”

The drop from $575 per tonne to $525 represents a potential $37.5M saving to the sector on an annualised basis. Urea now sits at just 61% of the peak price in 2012, which Greg says will be welcome news for Ravensdown’s customers.

In addition to urea, effective Monday, DAP will be reduced by $25 per tonne, granular ammonium sulphate by $15, and Potash by $10, with a flow-on effect to related products.

“For a large dairy farmer in the grip of a pay-out 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.”

The commitment to pass on the benefits to shareholders, Greg says, is made possible because of Ravensdown’s strong longstanding relationships with global suppliers and managing the fluctuation in the exchange rate.

“Thanks to an amazing team of staff and loyal shareholders we’re going from strength to strength in improving our balance sheet and financial returns, which we can share with shareholders, providing further value. It’s rewarding to see that loyalty being repaid in these tight times.

“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, and that’s precisely what we are delivering.

“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, and that is about challenging the status quo and asking how things can be done better,” says Greg.

ENDS

Notes: More detail on the price cuts are on the Ravensdown website here.

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