Market Morsel: Aussie fert pricing

Market Morsel

There is no published price in Australia for fertiliser. To create a guide on fertiliser pricing, we are working with independent fertiliser analysis firm CRU to develop theoretical pricing for Urea and DAP into Australia.

The first two charts below show the fertiliser cost 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 fertilisers originate.

The theoretical model has DAP at A$950, up A$386 from January. The Urea is at A$958, up a whopping A$533 from January.

These charts give an idea of the trend of the fertiliser market in Australia. There will be a degree of variability between these prices and what you pay. These include additional local logistics, administration and retailing costs.

Whilst the actual purchase price of fertiliser has increased regardless of the origin; another factor will also drive our pricing – freight. In 2021 bulk freight rates have increased dramatically. Albeit, they are not at the same levels as 2008, they are an additional cost to getting fert into the country.