Press Release

Calls by WA Farmers President Mike Norton for new legislation to protect farmers from high fertiliser prices could lead to supply shortages, the Pastoralists and Graziers’ Association claimed today.

PGA Western Graingrowers Chairman Leon Bradley said Government intervention in the fertiliser industry was not only likely to incur more costs for farmers but also seriously disrupt supplies for the 2009 seeding.

“WAFF has seized on the findings of a Senate Inquiry headed by Bill Heffernan – a long standing critic of the fertiliser industry – and is supporting his theory that high fertiliser prices are the result of a conspiracy between fertiliser companies.  However if WAFF is successful in achieving Government intervention in the industry, the outcome will be even higher prices and more uncertain supplies,” Mr Bradley said.

“That is because fertiliser manufacture is energy intensive and like fuel is subject not only to the world parity price of oil and local supply/demand, but because it is imported, also to fluctuations in the Australian dollar.”

“The Australian price of imported DAP fertiliser has gone from $500 to $1,700/tonne in the past 12months and is now on its way down again.  But farmers have not been clearing existing stocks despite the offer of early delivery discounts of more than $200/tonne and other incentives by local companies and there is now an imminent threat of congestion in the supply chain.

“Adding a new threat of Government intervention will serve to deter importers from lodging their orders for the 2009 seeding, which must be in by mid January to guarantee adequate supplies,” Mr Bradley said.

“Farmers who believe Government involvement might protect them in that scenario, probably also believe they are entitled to fertiliser at $50/tonne.”

Mr Bradley urged Mr Norton to redirect his efforts to blocking a ban on water soluble fertilisers in the South West of WA which was proposed under the Carpenter Labor Government.

“Forcing farmers to use costly, lower quality fertilisers will cost them far more in the long run than a short term spike in the price of imported product.  Yet banning water soluble fertilisers is still very much on the State agenda and WAFF have been remarkably silent  in opposing this very costly initiative,” he said.