Farmers could save up to $100 per tonne on fertiliser costs for the coming season following an agreement between the Western Australian Farmers Federation and Ravensdown United Farmers.
Farmers could save up to $100 per tonne on fertiliser costs for the coming season following an agreement between the Western Australian Farmers Federation and Ravensdown United Farmers.
The announcement is below:
The Western Australian Farmers Federation (Inc.) (WAFarmers) has today announced an initiative which aims to save their members up to $100 per tonne on fertiliser costs for the coming season.
WAFarmers has reached an understanding, at this stage for the 2009 season only, with Ravensdown United Farmers, whereby savings achieved by increased orders of MAP and DAP fertiliser through Ravensdown United Farmers will be passed back to Western Australian farmers.
A collective order of an additional 40,000 tonnes (2.6 percent of the WA fertiliser market) above Ravensdown United Farmers budgeted sales will result in farmers receiving a $100 (excluding GST) per tonne discount. For MAP and DAP fertiliser, and based on current market figures, this equates to a cost of $929 (GST exclusive - Ex Kwinana) and $895 (GST exclusive - Ex Kwinana) per tonne respectively, prior to other potential benefits such as Ravensdown United Farmer's annual fertiliser rebate and Australian Shareholder Incentive Scheme.
WAFarmers President, Mike Norton, noted that WAFarmers has been working tirelessly on members behalf to reduce high farm input costs.
"Most recently WAFarmers has applied sustained pressure on fertiliser suppliers by highlighting the gap between international fertiliser markets and the price at which they are offering product to WA farmers," said Mr Norton.
"This sustained effort has seen fertiliser prices reduced by some suppliers, however, WAFarmers still has concerns that its members are being short changed, and thus is being proactive by taking further action.
"Negotiations have been undertaken with Ravensdown United Farmers, a co-operative and like minded organisation with mutual members, to bring about these savings."
Discussions between WAFarmers and Ravensdown United Farmers have revolved around available actions that can be taken to the benefit of WAFarmers members and Ravensdown United Farmers ability to timely supply quality product.
"Ravensdown United Farmers has been open in their communications and provided WAFarmers with adequate assurance in their ability to provide a high quality product in a timely manner.
"The discount will be achieved through increased sales of Ravensdown United Farmers' fertiliser, enabling it to purchase cheaper fertiliser on the international market and pass these savings onto its customers.
"WAFarmers is pleased that members will have the opportunity to save significant amounts on their fertiliser prices but stresses that this initiative requires their support in order to succeed," concluded Mr Norton.
