A global slump in the price of fertiliser is driving down the price in New Zealand, with farmers set to save thousands of dollars.
Fertiliser company Ballance Agri-Nutrients said the latest round of price reductions came into effect today.
CEO Mark Wynne said urea dropped $50 to $525 per tonne, DAP fell $25, sulphate of ammonia by $15 and potash by $10.
Mr Wynne said the reduction follows a global slump in fertiliser prices, driven by strong supply and soft demand.
"There's plenty of supply in the market at present, with extra production coming on stream and China switching from being an internal consumer of nutrients to an exporter. On the demand side, Brazil and India are both suffering from weakening currencies, therefore lowering their fertiliser requirements.
"Our foreign exchange approach has helped us to offset the weaker New Zealand dollar. In a tough year like this, these price reductions will be good news for farmers and growers."
Mr Wynne said that taking some of the pressure off pricing for shareholders throughout the year would likely flow through to a lower rebate payment than the high levels enjoyed by shareholders in recent years.
"However, we're confident we've done the right thing. Our aim is to consistently deliver our farmers and growers a strong return on their investment in our co-operative."