July 18, 2012
New Zealand's urea fertiliser price down on low demand
A reduction in the price farmers are paying for the importation of urea fertiliser was due to the recent drop in world demand.
Urea provides the main source of nitrogen used on New Zealand farms, especially dairy farms. New Zealand farms use 750,000-800,000 tonnes per year.
The Ravensdown fertiliser co-operative imports about 340,000 tonnes of that from Saudi Arabia.
About 260,000 tonnes are produced on-shore, at Ballance Agri-nutrients' Kapunui ammonia urea plant in Taranaki.
Supply general manager Shane Harold says the price of imported urea was sitting at about US$820per tonne, but that's now dropped to below US$800 due to changing demand.