26 Nov 2008

Price of urea drops

7:55 am on 26 November 2008

Ravensdown fertiliser co-operative has followed the lead of Ballance Agri-nutrients and reduced the price of urea, the main nitrogen fertiliser product.

While Ballance's urea price now sits at $910 per tonne, Ravensdown has dropped its price to $850 per tonne.

Ravensdown says it was able to make the change, effective from 25 November, because of a dramatic fall in the international commodity price; which has more than halved from $US800 per tonne in October, to $US350 per tonne.

It says the initial plan was to reduce the price of urea in December, but the collapse in international prices has been larger and faster than expected.

The company says it decided to cut the price now rather than waiting for stocks bought at the higher price, to be used.