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 No signs of fertiliser price relief 

No signs of fertiliser price relief

23/07/2008 1:50:00 PM
With no indications that fertiliser prices will ease in the next two years, it is critically important that growers look to secure stocks early, according to Australian Fertiliser Services Association SA president, Craig Swan.

"With worldwide high demand, the price for fertiliser will remain strong," he said.

"It may remain steady at best but I can't see it coming off at all."

Mr Swan said it was critically important that a "blanket" approach to fertiliser use was not taken.

"I'd recommend farmers start early in preparing for their requirements for the 2009 season," he said.

"Later in the year farmers should keep an eye out for early incentives from manufacturers.

"The good news is that there is a huge demand for the commodities that farmers are producing, and gross margins still look good for farming."

Also on the positive side are indications that fertiliser supply issues have been sorted out.

"We saw terrible instances of short supply in 2007 and the companies were aware of that and made sure they didn't have any problems in 2008," he said.

"The only supply issue now is with low-analysis single super, which is purely from demand outstripping manufacturing capability."

* Extract from a full report in Stock Journal, SA, July 24 issue.

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Comments


Date: Newest first | Oldest first
Does the term "Talking your book" mean anything to anyone? Did the interview explain what this fellow’s role is? Does he has any independence from the fert companies or if he is their PR man via the back door?.
Posted by Graingrower on 23/07/2008 10:13:02 PM
Get in early at record high prices so we can maxamise our profit seems to be the mantra from the suppliers. Farmers should base their buy price on ensuring they have a nett return from their enterprise.

The price will only drop when buyers are not fools and refuse to buy at these unrealistic high prices.

Posted by bazza on 24/07/2008 2:21:37 PM
I agree with graingrower and bazza - Craig Swan is obviously not a grower and does not pay the bills!

We should all refuse to buy fertiliser. If we all grew 5/6 bag crops without fertilisers the prices for crops would go up due to lack of supply and our gross margins would be all the better than paying these extreme prices and lining the fertiliser companies' pockets.

If we all did this where would the world food supply be?? Perhaps the powers that be, including the ACCC, might sit up and take notice!

The prices he says we should lock into are 300% on last year's prices.

Posted by broke farmer on 24/07/2008 11:31:25 PM

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Q: Will the abolition of AWB's dual share system result in growers' interests being put second to those of the shareholders?

Yes
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No
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Undecided
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Total Votes: 351
Poll Date: 20/07/2008

11/12/2008 | Farm lobby groups will decide next week whether the future of farm representation will stay as it is or be broadened to bring in the big end of town.
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