Ballance Agri-Nutrients in good shape despite record high commodity prices - board member

Fertiliser co-operative Ballance Agri-Nutrients is batting away the possibility of job losses as farmers resist paying red-hot global commodity prices.

Last month, its competitor Ravensdown said it would undergo a restructure after a 20 to 25 percent drop in sales as farming businesses juggle rising input costs.

But Ballance board member Duncan Coull assured the farmer-owned business was safe in the face of dropping sales.

"Ballance is in good shape. Our view would be that, I guess the current environment we've faced into the past 12 months is probably more cyclical than structural," Coull said.

"So at this point in time, it's business as usual for Ballance and just facing head-on our challenge to ensure that we're ready for spring and ready for the new season ahead for our farmers and growers around New Zealand."

Rabobank's latest semi-annual Fertiliser Outlook Report said while affordability would improve in the coming months, global consumption may still take two or three years to recover to pre-pandemic levels.

Coull said global resistance to sky-high commodity prices was a topic at the International Fertilizer Association Conference in Prague last month.

"I get a feeling that people like ourselves are at a tipping point, where those that are manufacturing core nutrients in the international marketplace and sellers of core nutrients are having to make some decisions around price points to create more demand."

There had been "demand burn globally from farmers" in response to the high prices for fertiliser and nutrients, he said.

"We're starting to see a correction now in terms of some key nutrients and that should flow through to farmers in the coming year, which is good news.

"From our perspective, we've just got to ride through these cycles and do as much as we can to provide surety of supply and affordable nutrients for our farmers."