ACCC Media Release , 22 August 2008
The ACCC have published a report which examines the reasons for recent increases in fertiliser prices.
The factors underlying the import price of fertilisers were considered through voluntary submissions from fertiliser suppliers and representative farming organisations.
The detailed report, (36 pages, pdf 688 Kb), concluded the significant rises in fertiliser prices reflect global supply and demand. Expanding world production of grains, livestock feed and bio-fuels coupled with increasing energy costs and a limited supply capacity, resulted in an increase in fertiliser prices worldwide.
Much of the conduct that raised industry concerns late in 2007 could be attributed to a deficiency in short-term supply associated with an unexpected bringing forward of demand to capitalise on improved growing conditions.