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Tuesday, 1 March 2016

Ravensdown leads with further urea price cuts

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For two consecutive months, we have initiated a price cut on key farm inputs like urea, N-Protect, DAP, and granular ammonium sulphate.

On top of February’s $50 per tonne saving for urea, customers were told at 11:00am today that Ravensdown has cut a further $20 per tonne from 2 March. Urea was already the lowest price it had been since 2007.

Chief Executive Greg Campbell is happy to be in a position to lead on price reductions for the agri-sector as farmers’ autumn-to-spring focus turns to home-grown pasture as the lowest cost feed.

All–year value is part of our commitment to all our shareholders, not just a short-term reaction to certain sectors’ current challenges. It’s about continuously buying well and managing the supply chain. Tight negotiation with great suppliers, shipping efficiencies and a prudent currency position mean we can currently pass the saving on.

According to Greg, the drop from $525 to $505 per tonne for urea will be welcome as farmers plan to leverage NZ’s pasture-growing capability which is the envy of the world. “When pasture is still growing in the autumn, that can be the best time to get the fertiliser on because as the saying goes ‘grass grows grass’.”

When comparing with supplemental or imported feed, pasture tends to be cheaper in terms of costs of each kilogram of dry matter. As more grass is grown, phosphate and sulphur can need replenishing through superphosphate to prevent soil fertility suffering.

Farmers are set to benefit from flow-on changes in related products. For example, conditions are still right in many parts of the country to apply N-Protect which reduces the amount of nitrogen lost to the atmosphere in dry conditions.

“We’ll keep looking to pass on price reductions along the way while targeting a sensible annual rebate for the end of our financial year,” concluded Greg.

Download a copy of our price list.

Prices quoted are for bulk product with 1.5% direct debit discount included ⋅ All prices exclude GST, and freight & handling charges.