While farmers in southern Australia have been celebrating the sharp drop in price of ammonium phosphate fertilisers and urea, the savings have not spread across the entire rural sector.
Farmers in northern Australia or farmers using single superphosphate products are yet to see any price reduction, and have been quick to blame a lack of competition for the discrepancies.
"It's been frustrating as we've read all about this big price drop in MAP and DAP, but the price falls certainly haven't made their way up this far," said Bathurst, central NSW, farmer Wayne Hooper.
"I've checked prices both at Bathurst and down the road at Blayney and MAP or DAP are still around that $1700/t mark.
"The only reduction in prices around here has been for urea."
It is a similar story for those dealing in single super products.
Fertiliser spreading contractor Greg Maslin, Scone, NSW, deals primarily with clients using single super or SF45.
He said there had been no reduction in product prices and that unless something happened, he was worried there would be a decline in sales, and by extension, demand for his services.
"Talking to agents, farmers are saying that they're going to sit on their hands until the price comes down," he said.
He lay the blame for the stagnant pricing with Incitec Pivot.
"As I see it, unless there's some serious competition to Incitec, the price will stay right where it is."
Mr Maslin said the price for single super had doubled in the past 12 months had not shown signs of retreating.
"All that have dropped are the products where Incitec has direct competition, such as MAP, DAP and urea, or blends of those," he said.
President of the Australian Fertiliser Services Association, Rod Abbott, confirmed that single super prices had held firm while ammonium-based phosphate fertilisers had come back, but said it was not a competition issue.
"It's all to do with international pricing – the price of raw phosphate rock has not come back at all," Mr Abbott said.
"For some reason, international MAP and DAP prices have collapsed, which has lead to a situation where ammonium fertiliser prices are actually below single super prices."
MAP and DAP have much higher nutrient analysis than single super products and virtually always trade at a premium.
"Phosphate rock hasn’t moved, but MAP and DAP have collapsed well below trend, which has led to this massive anomaly where MAP and DAP are cheaper per unit of phosphorus than single super, but you'd have to say that at some stage soon, perhaps when the northern hemisphere starts buying, they’d return to trend," Mr Abbott said.
He said world fundamentals suggested current quotes of $A800-850/t for MAP and DAP could be under the odds.
"Some of the fundamentals that drove fertiliser price rises haven't changed, such as the issue of world food supply.
"While food prices have eased back from the records of early last year, they are still at historical highs, so therefore it is reasonable to suggest, the potential for recovery is quite quick."
Email a friend