Monday, June 22, 2009

Are growers being ripped off with Ravensdown DAP price?

And more from our Aussie commentator - something that we as shareholders have suspected.

"They are ripping off growers blind on DAP at NZ$827/t. DAP has been selling on the world market at US$300-US$330 since the beginning of the year, current prices are at the bottom of the range anticipating additional Chinese capacity for June/July, it is well documented and highlighted recently at IFA Shanghai that DAP pricing will continue to be low due to low demand and expected to trade range bound for the medium term. Freight is roughly US$30/t and port/discharge/handling costs roughly US$25/t. This should mean a co-op that sells at “cost” should be more like US$400/t, maybe US$420 which I believe equates to around NZ$620/t?"

All this when Rodney promised Mid Canterbury arable farmers a forward fixed price no higher than $900 plus per tonne for spring delivery. Surely they're market intelligence research must have been better informed...which puts further questions over their honesty with growers and they're research on the Australian venture.

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