increase font size
Global urea supplies are in a fragile state.
New Zealand farmers will face higher urea prices this year, mainly on the back of tight global supply and a weak Kiwi dollar.
According to RaboResearch farm inputs and commodities analyst Paul Joules, global urea supplies are in a fragile state, with several key suppliers exporting lower volumes year-on-year, creating a "ripple effect" for volumes available to New Zealand fertiliser importers.
Urea is by far the most widely traded fertiliser in the world and, for New Zealand, represented more than a quarter (29%) of total fertiliser imports in 2024.
In the report ‘What tight urea supplies mean for global prices and New Zealand farmers’, RaboResearch says due to minimal volumes of urea produced domestically, New Zealand is particularly sensitive to global events.
Joules says that the urea market is expected to remain volatile due to complex supply chains and geopolitical influences, with prices elevated compared to historical averages.
“Ongoing supply issues in key exporting regions and the sensitive nature of natural gas markets – the predominant feedstock for urea production – suggest that urea prices will likely stay high,” he says.
Joules said given complex supply chains, urea prices tend to trade with considerable volatility.
“At present, prices are trading around the five-year average. However, if we were to compare current prices with the pre-Russia-Ukraine war five-year average price, they are 45% higher,” he adds.
In addition to geopolitical issues impacting fertiliser prices and availability, natural gas is the other key influence within the market.
“The sensitivity of natural gas markets – to both weather and geopolitical events – adds to the volatility of urea prices,” he says.
The RaboResearch report said while most of the chief urea-producing regions and countries (Europe, Iran, Egypt and China) that are experiencing supply issues do not directly supply New Zealand, “they still account for global losses to the supply, which creates a ripple effect for available volumes for Kiwi importers”.
“The bank expects the strong outlook for the US dollar is likely to keep the NZD weak in 2025,” says Joules.
Jason Minkhorst, general manager customer at Ballance, says that despite recent upward trends in urea pricing within the domestic market and sustained pressure from the weak NZ dollar, Ballance is holding urea and SustaiN prices steady.
Nearly all fertiliser is imported and priced in USD, meaning the cost of securing these products has increased significantly, he says.
“However, Ballance is doing everything it can to absorb those pressures, allowing farmers to focus on growing feed while weather conditions are still suitable for growth and application,” says Minkhorst.
New research suggests Aotearoa New Zealand farmers are broadly matching phosphorus fertiliser use to the needs of their soils, helping maintain relatively stable nutrient levels across the country’s agricultural land.
According to Ravensdown's most recent Market Outlook report, a combination of geopolitical movements and volatile market responses are impacting the global fertiliser landscape.
DairyNZ has pulled together tactics that will help farmers improve on-farm efficiency and have positive benefits for the environment. These tactics are based on research, data, and lessons from leading farmers.
Ballance Agri-Nutrients is expanding its fixed price offer to help customers manage input costs with greater certainty over the coming season.
Research findings published in Europe support the concept of foliar fertilisation or foliar feeding in improving nitrogen use efficiency (NUE) while maintaining pasture productivity.
While the District Field Days brought with it a welcome dose of sunshine, it also attracted a significant cohort of sitting members from the Beehive – as one might expect in an election year.
Irish Minister of State of Agriculture, Noel Grealish was in New Zealand recently for an official visit.
While not all sibling rivalries come to blows, one headline event at the recent New Zealand Rural Games held in Palmerston North certainly did, when reigning World Champion Jack Jordan was denied the opportunity of defending his world title in Europe later this year, after being beaten by his big brother’s superior axle blows, at the Stihl Timbersports Nationals.
AgriZeroNZ has invested $5.1 million in Australian company Rumin8 to accelerate development of its methane-reducing products for cattle and bring them to New Zealand.
Farmers want more direct, accurate information about both fuel and fertiliser supply.
A bull on a freight plane sounds like the start of a joke, but for Ian Bryant, it is a fond memory of days gone by.
