Fertiliser supply in New Zealand is expected to meet demand for the upcoming autumn period, although pricing remains uncertain due to developments in the Middle East.
According to Ballance Agri-Nutrients and Ravensdown, supply availability is not currently a concern. However, price formation is influenced by global market conditions, including disruptions to shipping routes through the Strait of Hormuz. The passage is a key corridor for nutrient commodities shipped from countries such as Qatar, the United Arab Emirates, Saudi Arabia, Bahrain, and Iran.
Iran's blockade of shipping through the Strait has created uncertainty around freight timelines and associated costs. Ballance general manager, customer Jason Minkhorst, said fertiliser prices had already increased prior to the escalation.
"Given this latest escalation and the market's reaction, we anticipate more," he said.
"Upcoming shipments are mostly subject to pricing at the time of shipment. As a commodity, fertiliser pricing experiences movements similar to the imported oil market."
Ballance is advising growers to plan ahead in coordination with nutrient specialists to manage supply and timing requirements.
Ravensdown also confirmed that supply is in place for the current season. Chief sales and marketing officer Daniel Pranic said the product is either already in New Zealand or in transit.
"Supply is assured, with product already in New Zealand or on the water.
"We operate seasonally and, as you know, the next period of demand for fertiliser in New Zealand is some months away in spring.
"As we plan for the spring season, we will be leveraging our longstanding global supplier relationships to help secure the supply of product to New Zealand."
Looking ahead, fertiliser pricing for the spring season will depend on several variables, including the duration of the Middle East conflict, timing of shipments, and energy costs.
Source: DairyNews
