Market Morsel: Fertilizer in Australia

Market insights | 26th October 2020 | By Andrew Whitelaw

Markert Morsel

During my engagement at TEM (and in previous roles), I have covered analysis in a range of topics considered controversial, from live export and animal activists to genetic modification. The most contentious subject has been discussions around the price of fertilizer.

Fertilizers are an essential cost on-farm, and at TEM, we believe that it is important to provide independent insights into this market.

In recent weeks we have been working with fellow analysts in CRU to provide some insights into the fertilizer industry in Australia. The first stage is to release some data on the theoretical price to Australia for our most common fertilizers – DAP & Urea.

The charts below show the average cost of fertilizer at the origin, plus the average monthly cost of freight to Australia converted to A$. The sources are Saudi Arabia for Urea, and China for DAP. These are where the bulk of Australian fertilizers originate.

The idea these charts are to give an idea of the trend, and there will be a degree of variability between these prices and what you pay. These include additional local logistics, administration and retailing costs.

There are a considerable number of factors which influence fertilizer prices, including the cost of other commodities (energy), but these charts should inform on the general trend.

If you want to learn more about the fertilizer industry, we recommend listening to the podcast which we recorded with Chris Lawson of CRU (listen here) and contact them.

Tags

  • Fertilizer