Pulling fert prices down across the country

MEDIA RELEASE FOR IMMEDIATE USE
13 February 2009

Ballance takes pleasure in pulling fert prices down across the country

Once again, the new fertiliser prices set by Ballance Agri-Nutrients a week ago have quickly pulled the whole market down for the benefit of farmers nationwide.

The two main fertiliser companies now have very similar prices for shareholders following a catch-up move by Ravensdown on Friday the 13th, representing a huge saving to all sectors of agriculture, potentially in the region of half a billion dollars from the prices prevailing just three months ago.

We don’t usually comment when others in the fertiliser industry match our prices, as this just proves that Ballance has the fairest market prices, says Larry Bilodeau, Ballance’s Chief Executive, but this time the move by our main rival is so clearly in response to our prices.

Just two weeks ago Ravensdown Chairman Bill McLeod was reported in the press and on his company’s website saying: “We aren’t confident these lower international prices will remain”. His Chief Executive Rodney Green is quoted in the same article in the Otago Daily Times saying: “Don’t come in during May to order and expect the same prices”.

Yet within a week of Ballance lowering its prices to shareholders they have moved to match us.

That’s been the pattern since November, when we moved first to lower our urea price. We were followed again in December when we trimmed our phosphate-based product lines, and once more in January when we launched our summer incentive discount of $35 per tonne.

In response to that incentive, our main rival came out with new prices, commenting to the market that international prices might not stay low, but now yet again has had to respond to meet our latest prices to shareholders we announced just a week ago on 6 February.

It is extremely satisfying to see that all the price reduction initiatives have been led by Ballance.

Mr Bilodeau adds that at Ballance’s current prices farmers can uplift their autumn fertiliser now with complete confidence, as these prices are truly competitive internationally.

ENDS

© Scoop Media