S.I. urea price down sharply

Press, 15 July 1986, Page 3

S.I. urea price down sharply

The price of urea to South Island farmers has been reduced as much as $lOO a tonne, the Ravensdown Supply Co-operative has announced.

The price of a onetonne pack will be $373.60, compared with the previous basic price of $475. Urea in halftonne packs and 40kg bags will cost $416 a tonne. Mr Graeme Robertson, chairman of the Farmlands Grain Society, has welcomed the price decrease, and said the society would now review plans to import urea. The society did not want to be involved in importing urea unless worthwhole savings to farmers resulted, said Mr Robertson. The society will continue monitoring the international price of urea.

The general manager of the gas products division of Petrocorp, Mr Peter Davenport, said the price of N-Rich urea had been reduced because of a softening in international prices. . PetroCorp was committted to maintaining competitiveness in both quality and price, and the new pricing level reflected the premium quality of its granulated urea, he said. Petrocorp’s price to distributors in the South Island will be $375 a tonne (free on rail) to the nearest railhead for a full

waggon load, compared with the previous price of $415. The new North Island price to distributors will be $365.

Petrocorp expects the new retail prices to be $416 in the South Island and $405 in the North Island.

The group marketing manager of Ravensdown, Mr Arthur Duncan, said the price reductions replaced the deferred payment and cash discount schemes, which had discounted the urea price to $445.

Farmers able to handle one-tonne packs of urea would be able to take advantage of a special price of $373.60, a saving of $101.40 on the previous basic price of $475. Both half-tonne and 40kg bags would be $59 cheaper at $416 a tonne.

The weak world market for fertiliser and the strong New Zealand dollar has contributed to cuts in the prices of other imported fertilisers, said Mr Duncan.

However, the price of superphosphate has risen $25.10 a tonne in response to the removal of the Government fertiliser subsidy of $12.50 and increased manufacturing and raw material costs.

The price of bulk superphosphate from Ravensdown’s Hornby depot will be $181.50 a tonne.