New Zealand farmers stand to benefit from significant savings on their farm nutrient inputs with Ballance Agri-Nutrients' latest round of price reductions.

Photo: file.

The price review sees urea drop $50 to $525, DAP reduce $25 per tonne, sulphate of ammonia by $15 and potash by $10. These changes will flow through to product blends.

Ballance CEO Mark Wynne says the move comes on the back of a global slump in fertiliser prices, driven by strong supply and soft demand.

'There's plenty of supply in the market at present, with extra production coming on stream and China switching from being an internal consumer of nutrients, to an exporter. On the demand side, Brazil and India are both suffering from weakening currencies therefore lowering their fertiliser requirements.”

The co-op has been supporting farmers with cash when it counts throughout the year – paying out rebates early, holding urea prices through spring, and dropping prices in December.

'Our foreign exchange approach has helped us to offset the weaker New Zealand dollar. In a tough year like this, these price reductions will be good news for farmers and growers.”

With recent rains over much of the country there is a good opportunity for farmers to take advantage of these reduced prices and apply fertiliser now for feed production ahead of autumn.

Mark says taking some of the pressure off pricing for shareholders throughout the year will likely flow through to a lower rebate payment than the high levels enjoyed by shareholders in recent years.

'However, we're confident we've done the right thing. Our aim is to consistently deliver our farmers and growers a strong return on their investment in our co-operative.”