Phosphate Commodity Prices Rising

Phosphate Commodity Prices Rising

International phosphate commodity prices have increased by 60% in the last few months and other commodities prices are also starting to rise on the back of tight global supplies.

As a result Ravensdown is being forced to respond and the price of DAP has increased by $88/tonne to $915/tonne (direct debit) effective from 19 February 2010.

“At this stage we anticipate holding the current prices of Superphosphate and Urea until the new financial year (1 June 2010),” says Ravensdown CEO Rodney Green.

“We are very aware farmers have had a tough couple of years and we want to do everything possible to support them because we’re concerned about declining soil fertility levels.

“Maintenance phosphate and sulphur are key drivers of pasture production so we’re encouraging farmers to get on their Superphosphate while pricing and weather conditions are favourable and our spreaders have capacity.

“With the current pricing there’s a significant price advantage for farmers to apply phosphate and sulphur now and nitrogen as requirede to meet feed demands,” Mr Green says.

World stock levels of food remain low and this puts New Zealand agriculture in a strong position going forward. “Ravensdown directly supplies about half the fertiliser used in New Zealand agriculture, so we have a key role to play in maintaining the country’s position as a premium agricultural producer. New Zealand was founded on an agricultural base, and when agriculture does well, the country does well,” he says.

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