PRICES for the three major fertilisers used by local farmers - nitrogen, phosphates, urea and potash - have gradually eased from the highs seen in 2022, when there was a sharp spike in global fertiliser prices with the outbreak of Russia's invasion of Ukraine.
And although prices remain high against historical levels, agribusiness banking specialist Rabobank expects muted global demand from across the fertiliser market to seep into prices within the coming six months with the weaker demand helping to offset global supply issues and keep fertiliser prices in a tight range.
Australian farmers are hugely dependent on other countries for fertiliser supply with very little of the chiefly-used fertilisers manufactured locally.
International supply and demand issues have a direct impact on Australian fertiliser prices and ability to procure fertiliser, with Australia being a relatively small player in the global buyer market and not in a position to dictate prices.
Wangaratta AG Warehouse senior agronomist Bec Bingley believes while Rabobank is forecasting price decreases in Australia, there are no current indications in the market that prove this price reprieve will be passed onto local farmers.
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“Currently fertiliser prices are up slightly for all trading companies and show no decline in the near future,” Ms Bingley said.
“Our prices are being driven by the Indian market due to their requirements which impacts local farmers here as we are forced to follow the international trend of fertiliser prices.
“Compared to this time last year, prices have remained fair compared to other years where pricing has been significantly higher, putting added pressure on local farmers' input costings.
“Farmers locally are currently paying $700/tonne for urea, $700/tonne for Pottash and $1100/tonne for DOP which is has a nitrogen component.
“While prices have not moved up, they will certainly not drop in a hurry.
“One of the concerns is Russia and China are in discussion and at this point, neither country are choosing to trade, forcing Australia to seek the European market which is trading at a higher rate.
“Unfortunately, Australia has no influence in the price structure, regardless, local farmers rely on inputs to sustain their crops.
“The good news is the supply of fertilisers has no issue as there is no shortage moving forward.
“Right now, fertiliser pricing is not the big problem, it’s the current environment as we have experienced little rainfall and five frosts in the last 10 days which has had an impact on crops.
“We are relying on a good rainfall in October to set things up for summer crops and to commence fertilising.”
