Urea price drop benefits farmers
Fertiliser co-operative Ravensdown has cut the price of urea by $40 to $605 a tonne.
This is the second time in seven weeks the co-operative has reduced its price in the key fertiliser for dairy and other farming.
Subdued demand in the United States has brought about the price change, along with China moving back into export mode with two million tonnes added to the global market.
Campbell said urea prices were nearly 19 per cent lower than June last year, and aerial and truck spreading operations were straining to keep up with demand.
"We're starting our new financial year as we mean to go on with market-responsive pricing and good availability of core products like DAP and superphosphate," said chief executive Greg Campbell.
Last week Ravensdown's main rival, Ballance Agri-Nutrients, dropped urea from $645 a tonne to $605/t and DAP from $850/t to $775/t.
Urea's price decline is good news for pasture growth and farm profitability, but Ravensdown said it would be working with farmers to ensure that nitrogen application complies with limits for modelled losses.
Campbell said Ravensdown helped farmers put on only enough fertiliser needed by using accurate soil test data and interactive fertiliser maps, with help from certified advisors.