Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Lowest urea price since 2007

MEDIA RELEASE

29 January 2016


Lowest urea price since 2007

Farmers stand to benefit from a $50 per tonne saving for urea from 1st February, when Ravensdown will drop its prices.

Chief Executive Greg Campbell says he is pleased that Ravensdown is again leading on a price reduction for farmers who are facing increasing costs in many aspects of their business whilst their returns are under pressure.

“We said it not long ago, with our recent superphosphate cap,” Greg says, “that we are about delivering all-year value to our shareholders, and we’re demonstrating it again with urea and other products.”

The drop from $575 per tonne to $525 represents a potential $37.5M saving to the sector on an annualised basis. Urea now sits at just 61% of the peak price in 2012, which Greg says will be welcome news for Ravensdown’s customers.

In addition to urea, effective Monday, DAP will be reduced by $25 per tonne, granular ammonium sulphate by $15, and Potash by $10, with a flow-on effect to related products.

“For a large dairy farmer in the grip of a pay-out downturn or a sheep and beef farmer dealing with drought or weaker returns, these price differences could mean thousands of dollars staying in their bank account. This is far more useful to our shareholders at this time than a large rebate cheque later in the year.”

The commitment to pass on the benefits to shareholders, Greg says, is made possible because of Ravensdown’s strong longstanding relationships with global suppliers and managing the fluctuation in the exchange rate.

“Thanks to an amazing team of staff and loyal shareholders we’re going from strength to strength in improving our balance sheet and financial returns, which we can share with shareholders, providing further value. It’s rewarding to see that loyalty being repaid in these tight times.

“We’ve been told consistently by our customers that they would prefer competitive pricing, money in their pocket, all-year value and a sensible annual rebate, and that’s precisely what we are delivering.

“Farmers are resilient and adaptable people, but it’s not just up to them to manage their way through these tough times. We all play our part in the rural sector, and that is about challenging the status quo and asking how things can be done better,” says Greg.

ENDS

Notes: More detail on the price cuts are on the Ravensdown website here.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>




Stats NZ: Card Spending Sees Strong Growth In May

Seasonally adjusted card spending rose by $189 million (2.3 percent) between April 2021 and May 2021, Stats NZ said today.
Spending rose across all industries for the first time since New Zealand moved to level 1 in June 2020... More>>


Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>



Stats NZ: New Zealand Is Getting Drier

While there is natural variation in precipitation due to seasons and cycles, New Zealand appears to be getting drier, Stats NZ said today... More>>