Transparency needed for fertiliser market, says SA grain grower

With no public prices available for Australian fertiliser, a grain grower is calling for more transparency in the market.

Diverse prices: Mecardo grains analyst Andrew Whitelaw said It was hard to get a gauge on anything to do with domestic fertiliser pricing.

WHILE Australian fertiliser prices have dropped significantly, a lack of transparency in the market could mean growers are still paying hefty sums.

Mecardo grains analyst Andrew Whitelaw said with no public prices quoted for fertiliser, it was difficult to gain an overall view of the market.

“It is hard to get a gauge on anything to do with domestic fertiliser pricing as we have limited visibility of pricing levels,” he said.

Australian prices typically followed global trends, Mr Whitelaw said, with New Orleans being a “good indication” of the market.

He said this year, the New Orleans diammonium phosphate price had fallen to $393 a tonne, without shipping and handling, compared with last year’s DAP price of about $600.

“New Orleans DAP hasn’t been at these levels since 2013 in Australian dollars a tonne,” he said. “We have also seen the DAP price in China and Saudi Arabia decline 25 per cent.”

Mr Whitelaw said he had been told of purchases by Australian growers in recent months of about $530 a tonne loaded on the truck at port, and some much higher quotes.

A South Australian grain grower, who wished to remain anonymous, said he questioned the transparency of the market after being quoted $630 for Monoammonium phosphate fertiliser in mid-December.

“My reseller was told by their supplier that the market was at $630, and said if prices were to fall, they would finish just under $600,” he said.

“But I knew someone who had got it (MAP) for $535 a tonne from a CRT store. “My reseller basically said I was lying.”

After telling his supplier he would buy elsewhere, he was offered the MAP for $530.

He said a common argument for high prices in a falling market was that it was old stock.

“But if I had leftover barley from a previous season I wouldn’t sell it at last year’s prices,” he said.

Mr Whitelaw advised farmers to be wary of traders with old stock and to shop around for new shipments.