Fertiliser prices are set to come under further pressure as Elders' first urea shipment is expected to dock at Kwinana next week.
The agribusiness company said the 25,000 tonne shipment has already been well received, with growers welcoming increased competition in the marketplace.
Previously, growers had adopted a wait and see approach as fertiliser prices came off historic highs reached last year.
Elders Rural Services managing director Mike Guerin said growers had already placed orders and the company was expecting more to commit to sales over the coming week to secure deliveries prior to sowing.
He added that Elders had conducted the initial shipment to assess the opportunity to increase supply choice and reliability for WA growers.
"We believe that the addition of new players to the fertiliser market can only be a positive move, generating increased competition and supply options for the benefit of Western Australia's primary producers," Mr Guerin said.
"We can see the wholesale market has responded to the initial shipment with the lowering of urea prices in WA since we launched our product offering off this ship. This will save the average grower many thousands of dollars in their fertiliser purchases.
"The shipment will provide a price-competitive source of supply for the coming season and the results will inform our deliberations on the opportunities and scope for getting better value for our clients out of the fertiliser supply chain."
The shipment of urea has been organised by Elders in co-operation with the company's joint venture partner in grain, Toepfer International.
