Ballance chief executive Larry Bilodeau said the lower prices will help farmers plan ahead with confidence.
Among the reductions is a $75 drop in urea prices to $640 a tonne, coming on top of a $30 reduction last month. Diammonium phosphate (DAP) is dropping by $70 a tonne to $850 and superphosphate is reducing $13 a tonne to $335.
Bilodeau said that with global markets for fertiliser stabilising, Ballance has been able to pass on purchasing benefits to customers before the co-operative’s next quarterly review on September 1.
“We always keep prices under review to ensure they reflect the international market. We aim to supply the best quality nutrients at the lowest possible price. As a co-op, we are also able to pass on additional benefits to shareholders through our rebate based on fertiliser purchases during the year.”
Bilodeau said the co-operative expects to announce a strong year-end result for shareholders next week and being able to lower nutrient prices in time for start of spring was an added bonus.
“Although volatility is here to stay, all the signs point to international fertiliser prices holding at lower levels in the medium term. There is new production capacity coming on stream, ruling out likely supply shortfalls.”
The new prices will apply from today. A full price list will be available from www.ballance.co.nz.