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Bryan Inch, general manager customer relationships.
Ravensdown has cut its superphosphate price to $310 per tonne and has undertaken to keep a lid on that price until the end of a busy spring.
The farmer-owned cooperative is facing strong demand as signs of confidence start to return to the agri-sector: demonstrated by increasing investment in nutrients and soil fertility.
“This is the value of a cooperative which is determined to turn its financial strength into a farmer advantage for the ultimate benefit of NZ Inc,” said Bryan Inch, general manager customer relationships.
“A private or listed company would be looking at the current strong demand for a fairly indispensable product and considering raising the price. But Ravensdown is committed to all-year value: this is the second year we have capped the superphosphate price through the spring.”
The price of Ravensdown’s superphosphate has moved to $310 from midnight on October 8 and flows through to other super-based products. The superphosphate price cap extends to all product picked up before December 16.
“In September, we saw a decade-long record broken in terms of daily sales activity so the pasture-first message across the industry is definitely sinking in,” says Inch.
“This seasonally-triggered price adjustment reflects our strong start to the year but is not really mirrored in the global trends for phosphate rock or sulphur, so it’s unlikely the price will remain at that level. Bringing fertiliser application forward also means missing the potential logjam at the aerial spreading stage,”
Over recent months, there has been a $3 price difference between Ravensdown’s superphosphate and the web-listed price of the only other NZ-based manufacturer of superphosphate. If not followed, today’s announcement brings that difference to $5 per tonne.
Customers were notified of the superphosphate price cap initiative at 5.00pm on October 7, 2016. Ravensdown also took the price initiative on August 15 with a $15 per tonne urea price cut.
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