The issue is once again in the spotlight as producers weigh up shrinking harvest profits ahead of a summer crop season when planting equipment should be programmed to apply nitrogen and phosphorous, according to requirement.

Lobby groups are lining up to pillory fertiliser manufacturers for their lacklustre attempts to pare back the price of their core product amidst claims the price of urea is three times higher than it should be.

But a spokesman for Incitec Pivot Ltd refutes these claims, adding the company is preparing a detailed response to present to the Senate Select Committee, which currently is examining fertiliser and supply arrangements in both Australian and overseas markets.

This week, however, AgForce Grains policy director Lindsay Krieg revealed that new figures on fertiliser costing had been sent to the National Farmers' Federation for presentation to the Senate Select Committee.

They note how the price of urea on the world market, based on the price of the product in the Middle East, rose to $US880/t in August 2008, falling sharply since to settle at around $US250/t over the past few weeks.

While the price drop for phosphorous has not been as great over as long a time period, Mr Krieg says it too is now trending down.

"Over the same period, however, the recommended retail price of urea, according to local retailers, rose from around $A1050/t to $A1350/t and it shows little sign of coming down," Mr Krieg said.

AgForce Grains believes that taking into account the US dollar price of urea in the Middle East, Australia's current exchange rate, plus factoring in the cost of freight needed to deliver the product to this country should translate to a total per tonne cost of $422.

"Based on these figures, the price of urea in Australia is three times the price it should be," Mr Krieg said.

"Fertiliser companies could be forgiven for this if they were carrying old stock that cost them the high prices but surely, after five months of price drops, they have new stock on hand."

* Extract from a full report in Queensland Country Life, November 20 edition.