Ballance has been able to hold the price of most manufactured products
Following the quarterly price review cycle, Ballance will apply new prices from 8 September 2011.
These price increases largely relate to nitrogen-based imported products which have increased due to international supply and demand pressures. Ballance has been able to hold the price of most manufactured products as a result of good buying and the strong New Zealand dollar.
From 8 September, the following new prices will apply.
|
Product |
Old price |
New price |
% change |
|
superten |
$345 |
$345 |
0 |
|
sulphur gain 30S |
$410 |
$410 |
0 |
|
Serpentine Super |
$305 |
$305 |
0 |
|
MOP (potash) |
$845 |
$845 |
0 |
|
DAP |
$1050 |
$1082 |
3.0 |
|
n-rich urea |
$759 |
$796 |
4.9 |
|
CAN |
$715 |
$751 |
5.0 |
|
SOA |
$611 |
$645 |
5.6 |
What is driving prices?
Emerging countries such as China and India have increased demand for fertiliser products to produce more and better quality food, and are purchasing product in large quantities from suppliers that do not have the ability to rapidly increase capacity to supply this increased demand.
Ballance has worked hard to establish and maintain strong relationships with our suppliers, however these changing dynamics in the fertiliser market globally are placing smaller importers such as Ballance in a weaker buying position, making product more difficult and more expensive to secure.
All of our imported commodities are impacted by global seasonality. The autumn seasonal demand from some of the large fertiliser-using economies in the northern hemisphere is coinciding with our spring season demand, which is influencing global prices.
Continued political and economic uncertainty is impacting the market, and the political unrest among major phosphate producing nations such as Tunisia, Morocco, Egypt and Syria has already created uncertainty around both supply and price. To help offset this and ensure price stability and security of supply, Ballance is sourcing phosphate rock from a range of suppliers.
The high New Zealand dollar is having a positive effect across all imported products, helping to offset the higher international costs.
What is the outlook for fertiliser pricing?
Increasing demand and firming global prices for food commodities are fuelling demand for fertiliser, with the global increase in demand experienced in 2010 likely to continue.
Urea production capacity is being increased in the medium term and is expected to help smooth price pressures in the longer term. However, further increases are anticipated in the short term.
Major fertiliser industry investments internationally will increase supply capacity over the next five years, but near-term market conditions will mean that supply will remain tight for elemental sulphur, phosphoric acid, DAP and seaborne ammonia. Potash and phosphate rock supply and pricing is expected to remain more stable.
How do I make the best use of my fertiliser investment?
Your co-operative has worked hard to keep these price increases as low as possible, and to ensure that nitrogen remains the most cost effective form of feed on farm.
You can optimise your investment in fertiliser by using nutrient budgets and smart nutrient management planning.
Speak with your local Technical Sales Representative on 0800 222 090 to develop a tailored plant nutrient management plan to make the most your fertiliser investment this spring.
8 September 2011
