SOUTHERN FERTILISER GIANT RAISES PRICES.

(From New Zealand Press Association)

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Wellington, Dec 1 - Big fertiliser company Ravensdown says sharp rises in global freight costs and oil-based raw materials are the main reason its prices for some fertilisers have jumped.

Superphosphate prices will rise on February 1, and from today, Ravensdown will charge $490.53/tonne for urea (a lift of $111.53 or 22.7 percent), $534.86 for DAP -- diammonium phosphate -- (up $66 or 12.3 percent); $402.87 for potassium chloride (up $69.94 or 17.3 percent); $295.50 for standard ammonium sulphate (up $29.55 or 10 percent), $341.80 for ammonium sulphate granular (up $32.51 or 9 percent). The bulk prices are before GST and for payment by direct debit. ``Freight rates around the world have trebled during the last 18 months,'' said Ravensdown chairman Jim Pringle. ``Typical spot rates for cargoes from Europe have increased to $NZ100 per tonne.

``Ravensdown has had contracts in place until recently buffering it from this significant increase,'' he said. ``Increases would have been higher but for the strong kiwi dollar''. Mr Pringle said raw materials from around the world made up 70 percent of Ravensdown's fertiliser costs, and another driver for the price rises was a big increase in global demand for fertiliser, particularly in the burgeoning economies of China and Brazil.

``Brazil, for example, is buying two million tonnes more of potassium chloride this year compared with last. The entire New Zealand fertiliser market is only three million tonnes.