17 Jul 2012

Urea fertiliser price drops

1:03 pm on 17 July 2012

A recent drop in world demand for urea fertiliser has reduced the price farmers are paying for the imported product.

Urea provides the main source of nitrogen used on New Zealand farms, especially dairy farms.

New Zealand farms use 750,000 - 800,000 tonnnes per year.

The Ravensdown fertiliser co-operative imports about 340,000 tonnes of that from Saudi Arabia.

Two hundred and 60 thousand tonnes is 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 $820per tonne, but that's now dropped to below $800 due to changing demand.