Fed: Fertiliser costs rise 40 per cent in Queensland

AAP General News (Australia)
04-29-2008
Fed: Fertiliser costs rise 40 per cent in Queensland

By Cathy Alexander

CANBERRA, April 29 AAP - Queensland grain farmers are reeling from a 40 per cent increase
in the cost of fertiliser over the past four years.

Lobby group Agforce Grains, which conducted research for a Senate inquiry investigating
the soaring price of fertiliser, said costs had risen at 14 times the rate of inflation.

The inquiry is investigating allegations of monopolistic and cartel behaviour in the
fertiliser industry.

The Australian Competition and Consumer Commission also is looking for any anti-competitive
conduct in the fertiliser industry.

AgForce grains president Lyndon Pfeffer said the cost of fertiliser and chemical inputs
for barley had increased 40 per cent - from $165/ha to $275/ha - since 2004.

The cost of inputs for sorghum rose 37 per cent from $210/ha to $335/ha.

"With the average rate of inflation, according to the Reserve Bank of Australia, at
2.85 per cent (and) assuming a three per cent rate for 2008, this cost increase is well
above that of other goods," Mr Pfeffer said.

The rising price of fertiliser would diminish farmers' financial returns for barley
and sorghum this year, he said.

As well, China's decision to increase tariffs on fertilisers to discourage exports,
had affected prices in Australia.

AAP ca/rl/jfm/bwl

KEYWORD: FERTILISER

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