Superphosphate rise tipped

Hill-country farmers are feeling gloomy about expected price rises for superphosphate even though major fertiliser co-operative Ravensdown intends to delay any increase to the middle of the year. Overseas phosphate commodity prices have increased by 60 per cent in the past few months, forcing Ravensdown to lift diammonium phosphate (DAP) on Friday by $88 a tonne to $915 a tonne. Rival co-operative Ballance Agri-Nutrients was set on Saturday to add $91 a tonne to its price of $921 a tonne, up 10.8 per cent reports Stuff. DAP is mostly used by cropping farmers, but this could place pressure on phosphate rock, used in superphosphate, a key fertiliser for sheep and beef farmers. Ravensdown plans to keep superphosphate and urea prices as they are until June 1. Federated Farmers Meat and Fibre chairman Bruce Wills said higher superphosphate prices above $400 a tonne would be mostly unaffordable for farmers struggling with lower returns, a volatile currency and higher costs. He said the drop in superphosphate prices to $312 a tonne from $400 earlier this year had offered farmers some hope.  "I know it is not the fertiliser companies' fault, but if they go up, and particularly superphosphate which is the No1 product for hill-country farmers, the simple outcome will be farmers will stop putting fertiliser on. There are plenty of farmers I know who have not put fertiliser on for three to five years." Ravensdown chief executive Rodney Green said the co-operative did not know how long it could hold down superphosphate prices, but hoped it could until the mid-year. He said if DAP stayed up this could put pressure on phosphate rock prices which would flow through to superphosphate, so the co-operative urged farmers to put it on the ground now.