24 Nov 2008

Fertiliser prices on the way down

6:55 am on 24 November 2008

After a year of unprecedented price hikes, there are signs that fertiliser prices are on the way down.

The commodities boom, along with rising fuel and shipping costs and surging agricultural demand, pushed some fertiliser prices up by several hundred percent.

But as commodity and oil prices fall, the pressure is coming off fertiliser prices as well.

Ballance Agri-Nutrients, one of the two big New Zealand fertiliser co-ops, has reduced the price of its main nitrogen product, urea, by 17%, a saving of $190 a tonne.

The company's communications manager, Peter Morits, said there will be further cuts to follow.

He said the company will be reviewing its prices for superphosphate, amonia phosphate and other phosphate products from 1 December.